https://www.investopedia.com/oxford-life-insurance-review-5195666
It looks like they have some flexibility here...
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Living Benefits verse No LB.
- Thread starter Cornelius
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It looks like they have some flexibility here...
LD, the chronic illness riders do not have the mortality adjustments, just the critical illness rider. The CI benefits are usually paid in a lump sum.
The chronic illness benefit triggers are normally unable to perform 2 ADLs and the benefit is pretty well set by the rider amounts. With many companies, the monthly benefit can be paid even if the person is not confined in a care facility.
One other thing, on the plans that have a CI rider for which a premium is charged, the benefit is normally locked in.
Since I have not seen the Oxford plan, I can't tell you exactly what you have with them.
Most of the "free" riders require permanency. Paid riders normally do not. That is a huge deal for the chronic market, whether the consumer realizes it or not.
I looked at the Oxford website.. That plan only has a Chronic Illness rider not a Critical Illness Rider so you don't have to worry about the mortality adjustments..
ANICO lumps all of their riders together with terminology. No idea if Oxford does something similar:
The Accelerated Benefit will be paid to you in lieu of all or a portion of the Eligible Death Benefit. The Eligible Death Benefit is the
total amount of death benefit available for acceleration under the base policy and any Covered Riders. The Accelerated Benefit
Payment will be equal to the Eligible Death Benefit less the actuarial discount, as determined by Us; an administrative charge
not to exceed $500; and any policy debt, if the qualifying Rider Insured is also the Base Policy Insured. The Accelerated Benefit
Payment for the Base Policy Insured will never be less than the cash surrender value of the Base Policy, if any
Most companies I have seen separate the Chronic and Critical illness benefits and the actuarial discount only apples to the Critical Illness.
- 4,920
But that isn't contractual is it? Contracts appear to say they will discount at an undetermined rate decided by them at claim time. That is the part that always surprises me & I had a carrier actuary claim there is talk of class action or state insurance commissioner action being considered because of the vagueness on this discount/fee
- 6,999
Thank you for posting this.
I find it annoying because it means that I am going to have to revisit an issue which I thought I had completed dealing with.
However it is useful to me because it shows me that I am not alone in finding the the terminology in the riders ADB-CIR and ADB-NHR to be both confusing and at variance with the language in their Prosperity Select sales brochure dated January 2020.
As an example, the sales brochure says the Chronic Illness Benefit can be paid monthly, subject to a cap based on percent of Death Benefit, subject to an absolute dollar cap and subject to a minimum remaining death benefit. The Investopedia article says the Chronic Illness Benefit is the lesser of $2,000 or 1% of the policy.
The rider forms talk about lump sum payments but they may also suggest that you can request a series of lump sum payments which would get the effect of a monthly payout. Very complex and obscure now that I look at it closely.
I guess I will have to see if a non-policyholder can obtain an actual claim form for these benefits from the company.
Also, since the Terminal Illness Benefits provision is contained in the body of the policy, I am not sure that it is a rider as the Investopedia article suggests.
- 6,999
Thank you for those additional efforts on my behalf.
Oh, you will receive my bill for services performed!
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