by pa5762 » Mon Jun 01, 2009 10:39 pm
Hello and thanks in advance for any input. I just found this forum and thought I'd put my situation and question out there for help.
Last Sept I had to stop working due to progression of breast cancer and now I'm stage IV (late stage). I "ported" my group life insurance and the first payment is due this month.
Can I request to take the accelerated death benefit anytime or is there a waiting period ?
What if I am given the benefit and say some time down the road I get better and want to try to work a couple of days a month (I'm a nurse and can work in a hospital pool as little as I want).....will they ask for the money back seeing I haven't died yet??
The fact is I'd like to use the money to fix up my house so when I pass away my son can just sell it and move on. Just planning ahead.
Pat
Last Sept I had to stop working due to progression of breast cancer and now I'm stage IV (late stage). I "ported" my group life insurance and the first payment is due this month.
Can I request to take the accelerated death benefit anytime or is there a waiting period ?
What if I am given the benefit and say some time down the road I get better and want to try to work a couple of days a month (I'm a nurse and can work in a hospital pool as little as I want).....will they ask for the money back seeing I haven't died yet??
The fact is I'd like to use the money to fix up my house so when I pass away my son can just sell it and move on. Just planning ahead.
Pat
Posted: Mon Jun 08, 2009 04:41 pm Post Subject:
Otherwise if your life insurance is you only asset (should you be terminally ill) then better preparation was needed.
However, the circumstance that the OP is in does not allow him to turn back time and prepare differently! The accelerated benefit option will NOT be taxable income, just as any proceeds from a loan are not considered income.
Good Luck!
Posted: Mon Jun 15, 2009 03:30 am Post Subject: Accelerated Death Benefit
One item most everyone is forgetting re the Accelerated Death Benefit is that a doctor has to certify in WRITING that the insured has 12 months or even up to 24 months or less to live. The doctor has to sign his name on the document and then it's sent to the insurance company for them to decide whether or not to approve the 50% to be given to the insured. It's just not automatic that the insured gets the funds just because he/she has a serious disease.
The only way a person can become insured for the accelerated death benefit is if it's added as a rider free of charge to their application for either universal life, whole life or in some cases term cases may offer it. Once the policy has been issued, an insured can not decide at a later time to add the rider if it was not added originally.
Posted: Mon Jun 15, 2009 02:53 pm Post Subject:
Unfortunately I meet all the criteria.
Posted: Tue Jun 16, 2009 04:00 am Post Subject:
Hey Cwcdmaker,
It's just not automatic that the insured gets the funds just because he/she has a serious disease.
Any particular reason for the life insurance companies to apply restrictions on forwarding accelerated death benefit to the policy holder? I mean, okay, it’s insured's money and he/she wants to pull out the sum before the death benefit is paid, why would the insurer object to it?
Posted: Tue Jun 16, 2009 10:57 am Post Subject:
Any particular reason for the life insurance companies to apply restrictions on forwarding accelerated death benefit to the policy holder? I mean, okay, it’s insured's money and he/she wants to pull out the sum before the death benefit is paid, why would the insurer object to it?
You are missing a crucial point. It is not the insured's money. The money belongs to the insurance company. If the policy has a cash surrender value, a policy loan can be taken. A policy with an accelerated death benefit option doesn't have to have any cash surrender value.
Posted: Thu Jun 18, 2009 03:46 am Post Subject:
To the OP:
PA, I hope that you've gotten the information you were seeking and I want to reiterate that you should do whatever you want to do, and stop listening to everybody babbling on about this. You have taken care of business and you should take the accelerated benefit and do whatever the hell you want to with it. The balance will go to your designated beneficiary, whom I assume is your son, and the advance won't have any adverse taxable effect. The only thing that could happen is that if you have any of the money remaining at the time of death, that money would be included in your gross estate values for potential estate tax consequences. You haven't mentioned if you've done appropriate estate planning or if there is/was a need for it given your assets.
If there's anything else we can help you with, please let us know.
To the rest of the posters: please try and keep in mind where the thread started. This puppy wandered all over the place and went into things that the OP had no need for. We want to make sure that we lead the OP in the direction the original post was intended to follow; not on some random journey that explores the moral consequences of this decision. It isn't our business to question the morals of a poster unless that's the direction of the thread.
InsTeacher 8)
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