Meet Suneel
At age 35, Suneel bought an Ethos Term Life – Choice policy with a 20 year term. Five years later, he was diagnosed with Stage 3 prostate cancer and had to take several months off work for treatment. Suneel exercised his policyʼs Critical Illness benefit 1 coverage to help pay his medical bills, the mortgage and other daily living expenses.
Benefit amount
90% of death benefit
$136,338
$450,000
Payment is determined by actuarial present value (APV) calculation, which is impacted by: ● Death benefit amount and ● future premiums ● Remaining life expectancy ● Actuarial discounting ● Administrative fee (up to $250) Contrast with total of premiums paid after 5 years: $2,464.20
Suneel can request a lower % to retain more of the death benefit
Original death benefit
10% of death benefit $50,000 $12.21/mo. premium
$500,000 $41.07/mo. premium
Total premiums paid to date: $2,464.20
New premium uses same risk class as before, new face amount + policy fee 2
For more info, see the Living Benefits client 1-pager
1 The Critical, Chronic and Terminal Illness Accelerated Benefits rider is not a long-term care product. 2 Living benefit claims have no effect on compensation, but renewal compensation is scaled down proportionally.
ethos.com
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