The Colon Club

Not to be maudlin, but does anyone have any experience with a Stage IV diagnosis triggering the ability to use an Accelerated Death Benefit rider on a life policy? In the case of my policy, the rider allows payment of 50% of face value of policy (up to a limit) on provision of a written statement from my doctor that life expectancy is one year or less (two years in states I don't live in).

Anyone used this? How was interaction with doctor? How was interaction with insurer?

Not looking to die within a year, but wouldn't mind doing a little planning and gathering some information.

Thanks.

You have chanelled into the EXACT reason " Critical Illness Insurance " was born.

Back in the day (my day ) when HIV /AIDS was considered a death sentence ... the MegaInsuros figured out that it was easier and cheaper to pay out 50% up front on a life insurance policy, than 100% of what they would have had to pay later....Geez what wonderful humanitarians ....

I have not had to "dance with these devils" for THIS reason ... BUTT I would have a well versed INDEPENDENT Insurance agent/broker on my team, and a savvy lawyer on speed dial.

JMO .... YMMV

Cheers and best wishes
CRguy

CRguy wrote:You have chanelled into the EXACT reason " Critical Illness Insurance " was born.

Back in the day (my day ) when HIV /AIDS was considered a death sentence ... the MegaInsuros figured out that it was easier and cheaper to pay out 50% up front on a life insurance policy, than 100% of what they would have had to pay later....Geez what wonderful humanitarians ....

I have not had to "dance with these devils" for THIS reason ... BUTT I would have a well versed INDEPENDENT Insurance agent/broker on my team, and a savvy lawyer on speed dial.

JMO .... YMMV

Cheers and best wishes
CRguy

Thank you CRguy - good advice for sure. I think in my case that the policy simply nets the accelerated benefit from the face value, and pays the remainder after death. I'd need to pay a year's interest on the accelerated benefit (they treat it like a loan, I guess ).

I'm confused about where to get the "life expectancy" numbers by year for Stage IV though - I've seen all the stuff about five years being 12%, but do you have any idea where the numbers might be for 1 year, 2 years, 3 years, etc.?

Thanks.

I believe there is a pretty strict clause that states death must be expected within one year. Luckily I don't think you are there with a few lung nodules. I think you can take a loan against it though. We have a whole life policy and can borrow against it.

I agree, I don't think I'm there (I don't even like writing "yet") either, but having reviewed the language, it appears to require a certification w/r/t to life expectancy, rather than an analysis of the individual case.

I'd just be curious to find the expectancy numbers for metastatic rectal cancer by year, which I can't seem to find anywhere. Unfortunately, this is a term policy, so no loans are possible.

JDMNYC wrote:
I'm confused about where to get the "life expectancy" numbers by year for Stage IV though - I've seen all the stuff about five years being 12%, but do you have any idea where the numbers might be for 1 year, 2 years, 3 years, etc.?

Thanks.

Here are two calculators that give percentages for different years:

http://www3.mdanderson.org/app/medcalc/ ... ctumcancer

http://skynet.ohsu.edu/nomograms/gastro ... rectal.php

Here's one for each year up to five (click colon cancer & keep scrolling)

http://www.cancercenter.com/colorectal- ... tatistics/

I did a viatical settlement with one of my term policies. If you'd like to discuss it feel free to PM me. I had a letter from my onc that outlined life expectancy in a general way. If I outlive the term, I'm going to have a big party.

When my husband was diagnosed with lymphoma and failed all of the standard chemo protocols, I looked into the accelerated death benefit on his policy. Ultimately, our oncologist submitted a letter to the insurance company stating that she believed he had 6-12 months to live. They payed out 50% of the face value of policy (maybe it was 75%---I can't remember) If my husband succumbed in less than a year, the remainder of the policy would have been paid out. If he survived more than a year, the balance of the policy would be forfeited. So, our oncologist was willing to write the letter (interestingly, the lymphoma oncologist was NOT). We moved from our home in Pittsburgh to Vermont where there was the possibility of a bone marrow transplant to try to cure the lymphoma. Ultimately he had a successful transplant done about 2.5 years ago, and may be cured. There is no residual llfe insurance, and no possibility to get it. So thankful about the way it worked out! Best wishes to you.

Thanks Bev -

That's a pretty good way to have it work out, I'd say

Jim

Thank you jhocno197 - Appreciate it.

Jim

I had an accelerated death benefit on my insurance and took advantage of it last year. Each policy can and will be different on all kinds of deails, meaning how much they pay out, life expectancy required for payout etc.

The terms of my policy was that they would payout 50% of my life insurance amount up to 500k. The remainder would be paid at my death. I had to be diagnosed with a terminal illness, with a life expectancy of 24 months.

From a process standpoint, it was easy peasy - fill out a form that includes a physician statement where my onc checked the box that said my prognosis was terminal and my life expectancy was less than 24 months (which based on stage 4 prognosis was reasonable). For my policy, there are no penalties if I live longer than expected, meaning I dont have to pay anything back, the remainder of my insurance isn't forfeited, I don't owe interext on anything, etc. if I dont die in the 24 month period.

For me, it was a win win scenario.

Happy to talk more, so PM if you'd like. Like I said though, each policy is different so my experience is not necessarily indicative of anything other tham my experience.