Living Benefits

Benefit from your life insurance during your lifetime

The Power of Life Insurance
In the unfortunate event of your death, losing you will be hard enough for your family. With a life insurance policy, your family will be protected against the loss of your income. Your family will receive the Death Benefit of your policy federal income tax free to help with burial costs, continue their standard of living, help with college expenses and more. For example, did you know that your Columbus Life policy includes a rider that can give you access to your death benefit while you are living?

Living Benefits
Columbus Life’s Life Plus Accelerated Death Benefit Rider®¹ gives you the power to access a portion of your life insurance policy’s death benefit while you are still living. This valuable rider is available on all life insurance policies offered by Columbus Life at no additional premium². This benefit gives you access to the cash value and death benefit of your policy in the event of a Specified Medical Condition, Terminal Illness, or a Chronic Illness (inability to perform two out of six Activities of Daily Living³). The money you receive can be used to help pay medical bills, mortgage and home maintenance costs, or anything you want (a vacation with your family). In many instances, these benefits can be received tax-free.

Take the Next Step
If you think a Columbus Life policy with Life Plus Accelerated Death Benefit Rider® is the right strategy for your plans, it’s important to work closely with your financial professional. Contact your advisor today to find out how this planning solution can help protect your future and that of your loved ones.

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The Value of Living Benefits
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¹ Product provisions, availability, definitions and benefits may vary by state.
² Additional charges may apply.
³The six Activities of Daily Living are routine daily activities generally considered necessary for a self-sustaining person to remain independent: eating, bathing, continence, dressing, toileting, and transferring. Some states define Chronic Illness as Permanent Confinement to a Nursing Home. Please contact your financial professional for details on your state. Advance will reduce the death benefit and interest will be charged. The advance may be increased to keep the policy active. Rider series CLR-202 1409, CLR-179 1208 and CLR-201 1208.

The lump-sum option on a Chronic Illness trigger is not available in the state of MA on Rider Series CLR-202.

An accelerated death benefit is not to be sold as or to replace long-term care insurance, nursing home insurance, or home care insurance. The proceeds from the policy are not intended to receive favorable tax treatment under Section 101(g) of the Internal Revenue Code (26 U.S.C. Sec. 101(g)).

Proceeds provided by the policy in the form of an accelerated death benefit provided by the policy will be paid when the insured has become chronically ill or otherwise eligible for benefits from a qualified event.

An Accelerated Death Benefit Rider is not Long-Term Care Insurance. An Accelerated Death Benefit Rider is attached to a life insurance policy and provides an advance on the death benefit if the policy holder meets specific qualifying events outlined by the insurance company. Long-Term Care insurance is a standalone health insurance policy that is designed to pay for the cost of long-term care services.

This is a life insurance benefit that also gives you the option to accelerate some or all of the death benefit in the event that you meet the criteria for a qualifying event described in the policy. This policy does not provide long-term care insurance subject to California long-term care insurance law. This policy is not a California Partnership for Long-Term Care program policy. This policy is not a Medicare Supplement policy.

Life insurance proceeds paid in the form of an accelerated death benefit when the insured has become chronically or terminally ill, and is otherwise eligible for benefits, are intended to receive favorable tax treatment under Section 101(g) of the Internal Revenue Code (26 U.S.C. Sec. 101(g)). There may be tax consequences in some situations in accepting an accelerated benefit payment amount, such as where total payments exceed the per diem limitation under the Internal Revenue Code. Consult your tax advisor before taking an advance.

An accelerated death benefit is not to be sold as or to replace long-term care insurance, nursing home insurance, or home care insurance. An accelerated death benefit (such as the Chronic Illness Accelerated Benefit Rider) and long-term care insurance provide very different kinds of benefits.

Product features differ between long-term care insurance and life insurance accelerated death benefit riders. Accelerated death benefit riders pay an unrestricted advance of a portion of the life insurance death benefit when the insured experiences terminal or chronic illness as defined in the rider. You do not have to show incurred care expenses associated with an accelerated death benefit. The maximum benefit payable is based on the policy’s cash value and face amount. Any advance paid will reduce the death benefit of the policy. Long-term care policies or riders, on the other hand, pay benefits based on expenses incurred by the policyholder for long-term care. The total benefits available for long-term care insurance are selected by the policyholder at issue. Long-term care insurance is a stand-alone insurance policy or a rider designed to pay for the cost of long-term care services. Long-term care insurance may include coverage for such qualifying events as institutional care, care in a nursing home or skilled nursing facility, home care coverage, hospice care, respite care, or community care.

© 2014 Columbus Life Insurance Company

Updated 02/22/2016