TERMINAL ILLNESS LIFE INSURANCE PAYOUT INFO

Jhettinger

Forum Supporter
Active member
Joined
Sep 22, 2016
Messages
97
Reason
PALS
Diagnosis
4/2016
Country
US
State
GA
Terminal Illness Insurance (known as Accelerated Death benefit in North America) pays out a capital sum if the policyholder is diagnosed with a terminal illness from which the policyholder is expected to die within 12 months of diagnosis, by a physician who specialises in that illness or condition.

Has anyone done this? How/where did you start?
 

grounded

Active member
Joined
Sep 25, 2012
Messages
37
Reason
PALS
Diagnosis
12/2011
Country
US
State
PA
I think what you are referring to applies to existing policies. If you already have a policy, check with your insurer.
If you are looking for new insurance, I think the only thing you will be able to get are policies that don't consider existing conditions. I'd be surprised if any of these have accelerated death benefits.
 

KevinM

Active member
Joined
Mar 30, 2019
Messages
87
Reason
PALS
Diagnosis
06/2019
Country
US
State
FL
Terminal Illness Insurance (known as Accelerated Death benefit in North America) pays out a capital sum if the policyholder is diagnosed with a terminal illness from which the policyholder is expected to die within 12 months of diagnosis, by a physician who specialises in that illness or condition.

Has anyone done this? How/where did you start?
I have looked into that through my Hartford Insurance policy at work, which does provide a lump sum payment equal to 40% of the policy amount, but have not pursued it yet. Time is running out for me to apply, though, because I will not technically be employed after February, and the policy will expire at that time.

I got the contact name of the Hartford employee that handles it, and basically what they need is a letter from the diagnosing physician stating something convincing enough re: the likelihood of death within 12 months. Hartford already has all my medical records since I applied for and am receiving disability payments from them. You would need to provide medical records documenting the diagnosis along with the letter I described if you have not already done so with your insurer.

This provision was obviously written with terminal cancer or other diseases with more definitive death timelines than ALS. The biggest issue with us is the 12 month requirement. The insurer could theoretically make an exception for ALS because of the difficulty in predicting longevity, but I haven’t tested the waters on that issue.

Since I have only been diagnosed for five months and don’t have significant progression at this point, I doubt the ALS specialist that diagnosed me could say with any confidence that I will die in a year. I thought about suggesting some wording to him along the lines of “it’s possible given the uncertainty of the disease and the possibility of rapid progression,” but haven’t done it yet.

Since you were diagnosed more than three years ago, and the average lifespan is 2-5 after diagnosis, I think you have a stronger argument in getting such a statement from your neurologist (of course I’m hoping that you will be around far longer than 12 months from now!)

If you do choose to give it a try, please let us know if you’re successful with your doctor and the insurance company. Best, Kevin
 

KimT

Forum Supporter
Extremely helpful member
Joined
Nov 18, 2014
Messages
3,525
Reason
PALS
Diagnosis
08/2015
Country
US
State
South
My pain management neurologist signed a form for a PALS in my support group. He was able to get a 50% payout acceleration. He lived about two more years after receiving the payout. It was much needed as he didn't have much and the payout enabled him to make modifications to his home and buy a van.

Policies are written in different ways. Some of the richer ones will pay out a portion upon a doctor's letter and more after death. There is always the option, if your policy is not work-related and will not stop when you are no longer working, of borrowing against it or even selling it to a third party.
 

KevinM

Active member
Joined
Mar 30, 2019
Messages
87
Reason
PALS
Diagnosis
06/2019
Country
US
State
FL
My pain management neurologist signed a form for a PALS in my support group. He was able to get a 50% payout acceleration. He lived about two more years after receiving the payout. It was much needed as he didn't have much and the payout enabled him to make modifications to his home and buy a van.

Policies are written in different ways. Some of the richer ones will pay out a portion upon a doctor's letter and more after death. There is always the option, if your policy is not work-related and will not stop when you are no longer working, of borrowing against it or even selling it to a third party.
I made a mistake in my previous post. I meant to say that Hartford would make a lump sum payment of 80% of the amount, not 40%.
 

frankb

Senior member
Joined
Jun 8, 2011
Messages
535
Reason
PALS
Diagnosis
10/2010
Country
US
State
Georgia
re kevinm relating to work place life insurance coverage. had a guest speaker at an als symposium a few years back. he encouraged all to continue their work place insurance (and even increase amount while still employed). said continuing the policy at one's expense could be done. worth checking out since this is a big, big deal for survivors. he even wrote a book on survivor matters and covered this info. sorry i don't recall his name. good luck. - not related to your orig question, john, but thought the info important.
 

Vincent

Senior member
Joined
Dec 30, 2013
Messages
951
Reason
PALS
Diagnosis
08/2014
Country
CA
State
ON
I called my Knights of Columbus insurance advisor and he took it from there. I cashed out $ 25000 to pay for my daughter's wedding. I have another policy I can take even more on but I'm saving that for If my wife has to stop working.
Vincent
 
Top