Living benefit riders that customize your life insurance

Living benefit riders that customize your life insurance

When most people think of permanent life insurance, they think of the death benefit it provides and often overlook the living benefits of life insurance that it can bring you while you are alive.

While some of these living benefits are automatically a part of how your policy is design, your financial professional may suggest that you add optional features (known as “riders”) that can customize how the policy works to better match your needs.

Below are some of the optional riders available on a permanent life insurance policy from Ohio National. Each has its own set of guidelines — like which products it can be added to, when the rider must be added, and whether there is a cost associated with the rider. Your financial professional can help you understand how our riders work, and whether they’re the right for your protection strategy.

Provide financial help if you are chronically or terminally ill

Some riders give you the flexibility to access a part of your death benefit early as a living benefit you can use when you need it, and however you need it, in the event you suffer from a permanent chronic or terminal illness.

It’s not a loan against the cash value of your policy that you pay back, but a lien against the death benefit. In essence, you’ll trade future money you can’t use for current money you can, at a time when you may need it most.

Accessing a portion of your death benefit early will impact how your policy performs, including the death benefit proceeds that will be payable to your beneficiaries. It’s also important to know that riders are not long term care insurance, can vary in how they work by product and by state, and in some cases may have impacts on your taxes or eligibility for government benefits. Guidance from a tax professional and your financial professional can help you navigate whether using this rider is right for you.

Access to additional future coverage, regardless of health

Many times, life changes in a positive way, such as marriage, the birth of a child, the purchase of a home, or an earnings increase. When these changes occur, additional death benefit is needed.

A rider can allow you to purchase specified amounts of additional insurance at designated points in the future without having to demonstrate that you still qualify for coverage.

Waive policy premiums if you become disabled

Becoming disabled can put a significant strain on your finances and make paying your life insurance premiums challenging. This living benefit rider can help ensure that the required premium for the policy will be waived if you become totally disabled.

Since disabilities can range in length and severity, your financial professional can help you understand what circumstances qualify for coverage under the rider’s guidelines.

Purchase temporary insurance for your children

For a flat cost, these riders provide a limited amount of temporary life insurance coverage for any current or future children.

Within the rider’s guidelines, the temporary coverage can also be converted into individual permanent policies for each child, which will carry their own premium requirements to maintain.

Are living benefit riders right for you?

These are only a few of the riders available on permanent life insurance with Ohio National, and are not a complete description of how they work. Your Ohio National financial professional can provide you with more information on our riders, weigh their advantages and disadvantages, and that may be right for your needs.

Products issued by The Ohio National Life Insurance Company and Ohio National Life Assurance Corporation. Registered products distributed by Ohio National Equities, Inc., Member FINRA. Product, product features and rider availability vary by state. Guarantees are based upon the claims-paying ability of the issuer. Issuers not licensed to conduct business in New York. Withdrawals and loans may reduce the death benefit, cash surrender value and any living benefit amount.

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