An Accelerated Benefit Option (ABO), is included at no cost to the member. This feature allows early access to a portion of your life insurance benefit prior to your death. If you are diagnosed with a terminal illness and have a life expectancy of 6 months or less, you can receive 75% of your coverage amount, or up to $250,000.
A matching Accidental Death (AD) coverage is available to members and their Spouse/Domestic Partner, providing a benefit if cause of death is the result of an accident. Proceeds are in addition to and match the requested Term Life Insurance. The annual rate is affordable, at $0.60 per $1,000 of coverage.
Accelerated Death Benefit option is a feature that is made available to group life insurance participants. It is not a health, nursing home, or long-term care insurance benefit and is not designed to eliminate the need for those types of insurance coverage. The death benefit is reduced by the amount of the accelerated death benefit paid. There is no administrative fee to accelerate benefits. Receipt of accelerated death benefits may affect eligibility for public assistance and may be taxable. The federal income tax treatment of payments made under this rider depends upon whether the insured is the recipient of the benefits and is considered terminally ill. You may wish to seek professional tax advice before exercising this option.