Case Study : Meet John
John, 42, purchases $250,000 of Insurance. Eight years later he's injured, can't work and claims a monthly benefit on his disability insurance policy.
Jason's claim
- Jason's monthly disability benefit is 0.5% of $250,000 = $1,250.
- Over the course of his time off work, Jason receives monthly disability benefits totaling $22,500.
- Jason's available amount of insurance is now $227,500.
If Jason dies before his Insurance expires at age 65, and makes no other claims against his Insurance policy, the death benefit for his life insurance policy is 100% of his available amount of insurance, or $227,500.
Future protection option
At age 65, Jason has the option of converting his remaining available amount of insurance - $227,500 in this case - to a permanent life insurance policy, with no medical underwriting required.*
The amount of permanent insurance you can purchase - without medical underwriting - is limited to your remaining available amount of insuranc
* This option is not available if you have received a critical illness covered condition benefit.
Meet Lisa
Lisa, 38, has just returned to work after spending a few years raising her two young children. She buys $300,000 of Insurance. Ten years later, Lisa is diagnosed with a covered critical illness. Lisa claims a covered condition benefit on her critical illness insurance policy.
Lisa's claim
- Lisa's covered condition benefit is 25% of $300,000 = $75,000.
- Lisa's available amount of insurance now becomes $225,000.
If Lisa dies before her Insurance expires at age 65, and makes no other claims against her Insurance Policy, the death benefit for her life insurance policy is 100% of her available amount of insurance, or $225,000.
A second claim
If Lisa makes a disability claim prior to age 65, she is eligible to receive a monthly disability benefit.
- Lisa's monthly disability benefit is 0.5% of $300,000 = $1,500.
- If, over the course of her time off work, Lisa receives monthly disability benefits totaling $12,000, her available amount of insurance now becomes $213,000.
- This new available amount of insurance become's Lisa's death benefit should she die before her Insurance Plan expires at age 65.
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