About AARP Term Rider Protect Plus
If you find your coverage isn’t enough to help cover the expenses they might have, then applying for a rider could be a smart way to strengthen your protection.
There’s the Accelerated Benefit, or Living Benefit. This lets you use up to half of your coverage amount if you’re diagnosed with a terminal illness and given either 12 months or 2 years (or less) to live. Your current contract determines which time period is accurate for you.1
The rider also includes the Waiver of Premium for Nursing Home Stays. This means for certain qualified, doctor-ordered nursing home confinements, your premiums will be waived after 180 consecutive days.2
Exchanging Your Term Coverage
1) To make sure you can easily exchange if there is a time best for you. The rate you pay for permanent life insurance is based on your age when you switch and then never goes up … so the earlier you exchange, the lower your monthly rate will always be. While the rate for permanent life insurance is higher than the term rate, it will never increase — it’s locked in for life. Some customers find that easier to budget than waiting until later.
2) So you never have to go uninsured. When your term coverage expires at age 80, and you choose not exchange it, other life insurance can be difficult or may be impossible to secure. Switching to permanent life insurance that can last as long as you live helps ensure you can always provide a level of protection for your loved ones.
3) So it’s easy to understand and simple to do. The exchange option is one of the most popular features of term coverage, so we want to make sure you are aware of this benefit and if you choose you can use it on any premium due date.
1 Please note that receipt of “living benefit” (accelerated death benefit) insurance proceeds may affect your eligibility for public assistance programs. Proceeds may be taxable. You may wish to consult your financial adviser and/or attorney to determine how this may affect your personal situation. Premiums will be lower when the benefit amount decreases by one-half.
Texas residents: Death Benefits will be reduced if a “Living Benefit” (accelerated death benefit) is paid. The acceleration of life insurance benefits offered under this certificate is intended to qualify for favorable tax treatment under the IRC of 1986. If these benefits qualify for favorable tax treatment, the benefits are excludable from your income and not subject to taxation. You are advised to consult with a qualified tax advisor about circumstances under which you could receive acceleration of life insurance benefits excludable from income under federal law. Receipt of acceleration of life insurance benefits could also affect your and your family’s eligibility for public assistance programs (Medicaid, AFDC, SSI, or drug assistance). You are advised to consult with a qualified tax advisor and with social service agencies to determine how receipt of these benefits will affect your eligibility for public assistance. Premiums will be lower when the benefit amount decreases by one-half.
2 The nursing home must be primarily engaged in providing skilled nursing care under the supervision of a licensed physician. Nursing home does not include a home or facility used primarily for rest; for the care of drug addicts or alcoholics; for the care and treatment of mental diseases or disorders; or for custodial care.
3 Loans accrue interest and decrease the death benefit and cash value by the amount of the outstanding loan and interest.