Being diagnosed with a serious illness is difficult enough. If you have not planned for the possibility, high medical bills could add additional stress to an already stressful situation. But life insurance can help.
Some products include accelerated death benefits, which allow you to accelerate a portion of the death benefit while living if you should be diagnosed with a qualifying illness. These benefits are subject to eligibility requirements. The funds can be used toward medical bills, vacations, or in any way you choose. If you're concerned about the high cost of potential medical bills down the road, the following products may be right for you.
Like a bodyguard you hope you never have to use, term’s sole purpose is to protect your family or beneficiaries in case anything were to happen to you.
If you’re looking for some basic, straightforward protection, term may be the way to go. Pay your premium over the agreed upon term, and in return you’ll receive death benefit protection. Once the term is up, the policy is terminated. The bodyguard calls it a day.
The amount of death benefit your beneficiaries receive will depend on how much you purchase. Your financial professional can help you determine how much death benefit you need.
Term can help you prepare financially for the chance of being diagnosed with a qualifying illness.
In addition to offering death benefit protection, some term products may also include accelerated death benefits. These benefits allow the owner to access a portion of the death benefit while living, subject to eligibility requirements.
Term is usually the most affordable form of life insurance, often compared to the cost of a couple cups of coffee - much more affordable than a personal bodyguard.
Guaranteed universal life (GUL) insurance is similar to term in that its sole purpose is to provide death benefit protection, however, unlike term, GUL can provide you with guaranteed death benefit protection for the duration of your life (subject to premium payment requirements), or for the amount of time that you and your financial professional determine you need.
One of the best things about GUL is that the premium is fixed, so the amount you pay stays the same for your entire life, as long as you continue to meet the minimum payment requirements on time to maintain the guaranteed level premium. A missed or late payment can affect the guaranteed premium.
If you’re looking for death benefit protection for the long haul, GUL may be right for you.
Indexed universal life (IUL) insurance is death benefit protection that also provides the opportunity to build long-term cash value by earning interest that is linked to the movement of a selected stock market index over a specific period of time. Although growth is based on a stock market index, your premium is not actually invested in the market or in the applicable index. IUL products are subject to all policy fees and charges normally associated with most universal life insurance.
That’s a mouthful, but essentially IUL products can protect your family and potentially provide for you and your family in the long run.
Bet you didn't know life insurance could do that.
With an IUL product, the owner can take advantage of the upward movement of a selected stock market index while being protected from a downward performance through the power of the 0% floor, meaning the interest credited will not be less than zero percent.
In other words, a Midland National IUL policy can offer you the opportunity to build cash value without a negative index performance hindering your earning potential. The earning potential is calculated based on several factors, including a maximum interest rate, the amount of premium allocated to the index account, the floor, and/or a spread rate, which is subtracted from the index growth. The cash value you build may be used in many ways, from college funding1 for your kids, to helping supplement your retirement income.
IUL can help you prepare financially for the potential high cost of future medical bills.
In addition to offering death benefit protection and cash value growth potential, IUL products may also include accelerated death benefits.
Available at issue for no additional premium, these benefits allow the owner to accelerate a portion of the death benefit should the insured be diagnosed with a qualifying illness, subject to eligibility requirements. The accelerated death benefit payment could be used for bills, making up for missed work due to your illness, family vacations, or in any other way you choose.2
Talk with your financial professional today.
The term financial professional is not intended to imply engagement in an advisory business in which compensation is not related to sales. Financial professionals that are insurance licensed will be paid a commission on the sale of an insurance product.
1. The primary purpose of life insurance is to provide a death benefit to beneficiaries. Because of the uncertainty surrounding all funding options except savings, it is critical to make personal savings the cornerstone of your college funding program. However, even a well-conceived savings plan can be vulnerable. Should you die prematurely, your savings plan could come to an abrupt end. To protect against this unexpected event, life insurance may be the only vehicle that can help assure the completion of a funding plan. In addition to the financial protection aspect of insurance, the tax-deferred buildup of cash values can be part of your college savings plan. Generally, if the policy is not a Modified Endowment Contract then tax-free withdrawals can be made up to the contract's cost basis. Moreover, if the policy is not a Modified Endowment Contract, then loans in excess of the cost basis are also tax free as long as the policy remains in force.
2. The death benefit will be reduced by the amount of the death benefit accelerated. Since benefits are paid prior to death, a discount will be applied to the death benefit accelerated. As a result, the actual amount received will be less than the amount of the death benefit accelerated. An administrative fee is required at time of election.
Texas Residents: Receipt of acceleration-of-life-insurance benefits may affect your, your spouse’s or your family’s eligibility for public assistance programs such as medical assistance (Medicaid), Aid to Families with Dependent Children (AFDC), supplementary social security income (SSI), and drug assistance programs. You are advised to consult with a qualified tax advisor and with social service agencies concerning how receipt of such a payment will affect your, your spouse’s and your family’s eligibility for public assistance.
Life insurance policies have terms under which the policy may be continued in force or discontinued. Current cost of insurance rates and interest rates are not guaranteed. Therefore, the planned periodic premium may not be sufficient to carry the contract to maturity. The Index Accounts are subject to caps and participation rates. In no case will the interest credited be less than 0 percent. Please refer to the customized illustration provided by your agent for additional detail. The policy's death benefit is paid upon the death of the insured. The policy does not continue to accumulate cash value and excess interest after the insured's death. For costs and complete details, call or write to Midland National Life Insurance Company, Administrative Office, One Sammons Plaza, Sioux Falls, SD 57193, telephone (800) 923-3223.
Indexed Universal Life Insurance products are not an investment in the “market” or in the applicable index and are subject to all policy fees and charges normally associated with most universal life insurance.
Insurance products are issued by Midland National Life Insurance Company, Administrative Office, One Sammons Plaza, Sioux Falls, SD 57193 Products, features, riders, endorsements, or issues ages may not be available in all jurisdictions. Limitations or restrictions may apply.
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