Life Insurance Benefits and Riders

Increased Protection to Meet Life’s Challenges

Beneficial Financial Group is committed to providing products and services to meet your unique needs, so we offer a variety of benefits and riders to further enhance your life insurance policy. Our financial professionals can assist you in customizing your policy for your specific circumstances.

Several of the benefits and riders summarized below are included in our policies at no cost (shown in brown), while others may be added for an additional premium. The Benefits and Riders At-a-Glance Table at the end of this article shows which benefits and riders are available for Beneficial whole life, universal life, and term policies; which benefits and riders have no charge; and which ones have a charge.

Accelerated Benefit for Chronic Illness.¹ At a time when money should be the least of your concerns, the Accelerated Benefit for Chronic Illness Rider can help provide important funds when financial needs may be the greatest. This innovative benefit is included with all standard-risk whole life policies and most universal life (UL) policies at no additional cost. It allows a policyowner to receive a discounted advance payment of part or all of the death benefit if the insured becomes unable to perform two or more of the six activities of daily living (ADLs) for at least 90 days without substantial assistance or if the insured has irreversible dementia, such as Alzheimer’s disease. There are no restrictions on the use of the funds. This benefit is not long-term care insurance, nor is it intended to replace long-term care insurance.

Accelerated Benefit for Terminal Illness (Living Benefit).² All life policies include this no-cost provision that allows up to 80 percent of the death benefit to be paid to the policyowner upon satisfactory evidence that the insured is terminally ill and likely to die within six months.

Accidental Death Benefit.³ This benefit increases the insurance proceeds up to double (and in some cases triple) if the insured dies from accidental bodily injury. It is available with whole life, term, and individual UL policies.

Additional Insured Rider.⁴ This rider provides term insurance on someone other than the primary insured, such as a spouse, family member, or business partner. The additional insured may convert the term insurance to an individual permanent insurance policy within ten years without providing evidence of insurability, regardless of future health condition.

Charitable Giving Benefit.⁵ You buy life insurance to protect your family or business. Beneficial Financial Group makes it possible for you to benefit a qualified charity with your policy as well. Our Charitable Giving Benefit is included at no cost with all eligible UL and whole life policies issued. Upon the death of the insured, Beneficial Financial Group donates 1 percent of the value of the death benefit in behalf of the policyowner to his or her selected qualified charity or civic organization. This endorsement allows for a minimum donation of $500 and a maximum donation of $10,000. The contribution does not decrease the death benefit; it will be paid in addition to the death benefit.

Children’s Benefit Rider.⁶ This rider provides insurance on each child, stepchild, or legally adopted child of the insured parent, from age 15 days to age 25 years. The rider premium is waived upon the death of the insured parent. Each insured child may convert his or her coverage to an individual permanent insurance policy, regardless of future health condition.

Disability Benefit—Limited Waiver of Premium Rider.⁷ This rider waives the premium during the first ten years of the term policy or the initial guarantee period, whichever is longer, while the insured is totally disabled. It is available only on term policies.

Disability Benefit—Payment of Mission Costs Rider.⁸ This rider pays a benefit equal to the expenses of any dependent children participating in voluntary, full-time missionary service, up to a maximum amount per month per child, while the insured is totally disabled. It is available with whole life, term, and individual UL policies.

Disability Benefit—Waiver of Monthly Deduction.⁹ Similar to a Waiver of Premium rider, this rider waives the UL monthly deduction when the insured has been continuously disabled. This benefit does not waive the planned premium. It is available on most UL policies.

Disability Benefit—Waiver of Premium Rider.¹⁰ This rider waives the premium of a whole life or term policy when the primary insured has been continuously disabled.

Disability Benefit—Waiver of Stated Premium Rider.¹¹ Similar to a Waiver of Premium rider, except this rider waives a planned premium selected by the UL policyowner when the insured has been continuously disabled. It is available on individual UL policies.

Estate Tax Sunset Endorsement.¹² This no-cost endorsement, available only with second-to-die UL policies, gives policyowners flexibility when it comes to changes in estate tax legislation. If a policy is purchased so that money is available to pay estate taxes (which is why many second-to-die policies are purchased), but the estate tax repeal (EGTRRA-2001) is extended or made permanent, the policyowner may fully surrender the contract and terminate the coverage during 2010 and receive the accumulation value without surrender penalties.

Guaranteed Insurability Option Benefit.¹³ This benefit allows the policyowner to increase the face amount of the policy on specified option dates without providing evidence of insurability. It is available on whole life and individual UL policies.

Periodic-Premium Paid-Up Additions Rider.¹⁴ This rider allows the policyowner to pay an ongoing, scheduled premium, in addition to the whole life contract premium, to purchase additional paid-up, permanent insurance on the insured’s life. The additional paid-up insurance has cash value and loan value and is eligible for dividends.

Policy Split Rider.¹⁵ This rider is available only on a second-to-die UL policy and is included at no cost. It allows two insureds who are married to split the policy into two individual policies in the event of a divorce or a particular change in the federal estate tax law.

Single-Premium Paid-Up Additions Rider.¹⁶ This rider allows the policyowner to pay a single, lump-sum premium into the whole life policy at the time of issue, in addition to the level premiums, creating an increased insurance benefit and increased cash values and dividends. The single premium purchases additional paid-up, permanent insurance on the insured’s life, which will be included in the policy’s death benefit.

Term and Paid-Up Additions Rider (TAR).¹⁷ This rider provides a way for a policyowner to reach a target insurance benefit at a reduced premium compared to the cost of a base whole life policy. The premium for this rider purchases one-year term insurance and additional paid-up, permanent insurance on the insured’s life. Over time the additional paid-up insurance from the TAR rider is expected to accumulate and replace the term insurance. It is available only on whole life policies.

Term Insurance Rider.¹⁸ This rider provides the primary insured with term insurance in addition to the UL or whole life base policy. It uses a Beneficial Term policy as a rider instead of a policy. The insured may convert the term insurance to permanent insurance coverage within ten years without providing evidence of insurability.

Please contact a Beneficial Financial Group financial professional for more information about using these valuable riders and benefits to enhance your life insurance policy. Riders are not available in all states.

To find out more, click here to find a Beneficial agent near you.

Policy forms: ¹ABCI-04-1 or ABCI-04-02 (WL and individual UL), ABCI-04-J or ABCI-04-2-J (second-to-die UL); ²B10; ³570; ⁴045-L40-74; ⁵E-CHARIT (WL and individual UL), E-CHARIT-J (second-to-die UL); ⁶CBR-02 (Utah), L72 (other states); ⁷LWP-981; ⁸PMC-971; ⁹WMD-U01-1; ¹⁰WP-L01-1; ¹¹WSP-U01-1; ¹²E-ESTTAX; ¹³GIO-971; ¹⁴1-P38-74; ¹⁵PSR; ¹⁶1-P36-74; ¹⁷5-T36-74; ¹⁸045-T39-74.

Fixed life insurance products are offered by Beneficial Life Insurance Company, 150 Social Hall Ave., P.O. Box 45654, Salt Lake City, Utah 84145-0654, (801) 933-1100. These products are not available in all states. Beneficial Financial Group is a marketing name for Beneficial Life Insurance Company, its affiliated companies, and sales representatives.