As one of the newest products available through AIG Direct, Quality of Life Insurance provides innovative benefits that set it apart from traditional life insurance. While it can provide a financial death benefit to your loved ones after your passing (much like a traditional policy), the hallmark of this type of life insurance is that it can also provide financial support before your death. This type of feature is also known as "living benefits."
Living benefits, or Accelerated Benefit Riders, are life insurance proceeds paid to the policy holder before he or she dies, helping to ensure that family members don't have to bear a financial burden. The key here is that you don't have to pass away to receive the cash benefit from your policy, given your current situation fits into one of three categories: chronic illness, critical illness or terminal illness.
The one or more accelerated benefit riders attached to your policy permit the owner to receive a portion of the insured person’s life insurance benefit under the policy due to a qualifying critical, chronic, or terminal illness during the insured person’s lifetime, subject to policy terms and conditions.
To qualify for a chronic illness, you would need to be certified by a licensed health practitioner in the last 12 months with a qualifying illness or physical condition that would prevent you from performing at least two "Activities of Daily Living", without substantial assistance or requires substantial supervision from another person to protect the Insured Person from threats to health and safety due to cognitive impairment.
A critical illness is a sudden and severe illness or physical condition covered under the rider. Some examples of these types of ailments include, but are not limited to, major heart attack (heart attack in certain states), stroke, invasive cancer and paralysis.
A terminal illness is an illness or physical condition diagnosed and certified by a physician to be reasonably expected to result in your death within 24 months from the date of certification.
There are three major benefits of Quality of Life Insurance.
Consider a situation: If you were to have a heart attack or suffer a major illness today, would you have the financial means to continue to care for yourself and support your family? For many it would be challenging to make ends meet. In fact, according to LIMRA, more than half of people would be financially impacted within a year of losing a spouse. This is where living benefits could become so important.
Quality of Life insurance can be an affordable option for anyone who wants to help ensure that their family and loved ones are not overwhelmed by the financial burden of medical costs. With the cushion of living benefits, you can help your family when they need it most.
To begin your application for Quality of Life insurance, use our request a quote tool. If you are planning to purchase term universal life insurance and indexed universal life insurance through American General Life and are interested in adding a Quality of Life rider, make sure to mention your interest to the agent with whom you work.