Premium Chronic Care
Additional Protection When a Chronic Illness Changes Your Life
Life insurance is designed to protect your loved ones when you die. But what happens if you live through a serious chronic illness and need ongoing help with everyday activities? The Premium Chronic Care Rider, available with eligible FlexLife Indexed Universal Life Insurance policies from National life Group, is an optional rider designed to provide monthly benefits while you're living if you experience a qualifying chronic illness.
Unlike certain Accelerated Benefit Riders that may be included with eligible life insurance policies, Premium Chronic Care is optional and has an additional charge.
Why Would Someone Consider It?
A chronic illness can affect much more than your health.
You may need help at home.
Your spouse or family may become caregivers.
Your ability to work may change.
Professional care can become expensive.
Premium Chronic Care provides another financial resource designed to help you have more choices about how your care and financial needs are handled.
How Does Premium Chronic Care Work?
1. You Purchase an Eligible Life Insurance Policy
The Premium Chronic Care Rider is available with eligible FlexLife Indexed Universal Life Insurance policies.
2. You Add Premium Chronic Care
The rider is optional and has an additional charge based on age, rate class and death benefit.
3. You Experience a Qualifying Chronic Illness
You must satisfy the rider's definition of chronic illness.
4. You May Receive Monthly Benefits
Once the rider requirements are satisfied, you may accelerate a portion of your life insurance death benefit and receive benefits monthly. According to the carrier, there is no waiting period and there are no restrictions on how the benefit is used.
What Is a Qualifying Chronic Illness?
Under this rider, chronic illness is defined as being unable to perform without substantial assistance at least 2 of the 6 Activities of Daily Living for at least 90 continuous days, or requiring substantial supervision because of severe cognitive impairment.
The 6 Activities of Daily Living
Bathing
Eating
Dressing
Toileting
Transferring
Continence
Simply being diagnosed with an illness doesn't automatically qualify you. The insured must satisfy the rider's specific chronic-illness requirements.
Choose Your Monthly Benefit
When applying for the FlexLife policy, the Premium Chronic Care Rider allows you to select a monthly payout of:
2% or 4% of the applicable death benefit, subject to the rider provisions and the IRS per-diem limit at the time of claim. The percentage is selected at issue. You can later reduce the percentage, but you cannot increase it after issue.
See How It Could Work
The carrier provides the following examples using a $500,000 death benefit:
2% Monthly Payout Option
$500,000 Death Benefit
2% monthly benefit = $10,000 per month
Potential payout duration: 50 months
Potential total payout: $500,000
4% Monthly Payout Option
$500,000 Death Benefit
4% monthly benefit = $20,000 per month
Potential payout duration: 25 months
Potential total payout: $500,000
Actual maximum payouts are subject to the applicable IRS annual per-diem limit at the time of claim.
What About a $1 Million Policy?
Here's a simple illustration using a $1,000,000 death benefit:
2% Monthly Payout Option
$1,000,000 × 2% = $20,000 per month
4% Monthly Payout Option
$1,000,000 × 4% = $40,000 per month
Actual benefit payments remain subject to the applicable IRS per-diem limit at the time of claim and the terms and provisions of the rider. The carrier states that the selected payout percentage can be reduced, but not increased, after issue.
Up to $3 Million
According to the carrier, the Premium Chronic Care Rider can accelerate a death benefit of up to $3 million following a qualifying chronic illness. That doesn't mean everyone receives $3 million. The actual benefit depends on the policy's death benefit, selected payout percentage, qualification, IRS limits and applicable rider provisions.
What Can You Use the Money For?
It isn't restricted only to reimbursing nursing-home bills or medical expenses. That can provide financial flexibility for things such as:
🏡 In-home care
❤️ Care and assistance
🏠 Mortgage or housing expenses
💡 Household bills
💵 Everyday expenses
👨👩👧 Family financial needs
🏥 Medical and care expenses
You Decide What Your Family Needs Most That's an important distinction between having access to a cash benefit and having coverage that only reimburses specific expenses.
What Happens to Your Life Insurance?
You're Accessing Your Death Benefit Early Premium Chronic Care doesn't create a completely separate second death benefit. The chronic-care benefit accelerates the life insurance death benefit. The carrier gives this example:
Original Death Benefit: $500,000
Chronic Care Benefits Received: $300,000
Remaining Death Benefit: $200,000
When the insured dies, the unused $200,000 would be paid as the remaining death benefit, subject to the policy provisions.
How Is This Different From Regular Living Benefits?
Certain life insurance policies may include Accelerated Benefit Riders (ABRs) at no additional rider premium, although availability, qualifying events, benefit calculations, and charges vary by policy and carrier. The Premium Chronic Care Rider is different because it is an optional rider with an additional charge and is specifically designed for qualifying chronic illness. With this rider, the insured selects a 2% or 4% monthly payout option at policy issue, and the carrier describes the accelerated benefit as being provided dollar for dollar, subject to the applicable IRS per-diem limit and rider provisions. The rider's lifetime limit is also independent of the lifetime limit on other Accelerated Benefit Riders.
Why Would Someone Pay for Premium Chronic Care?
Because an included chronic-illness ABR and a Premium Chronic Care Rider are not necessarily the same benefit. The Premium Chronic Care Rider is specifically structured to provide a dollar-for-dollar accelerated benefit, while other ABRs may calculate benefits differently. The carrier specifically describes Premium Chronic Care as providing the accelerated benefit “dollar for dollar.”
Is This Long-Term Care Insurance?
I would include this question prominently because consumers will naturally ask it. Premium Chronic Care is a chronic illness rider on life insurance. It should not automatically be presented as traditional Long-Term Care insurance. If someone specifically wants insurance designed around Long-Term Care needs, we can also explore dedicated or linked-benefit Life Insurance + LTC solutions.
Learn About Long-Term Care Options
Who Can Apply?
According to the current carrier material, the Premium Chronic Care Rider is available for policyholders ages: 18–75 Availability is subject to the policy, underwriting, state approval and other carrier requirements.
Where Is Premium Chronic Care Available?
*Not available in California or New York.
*Availability in other states is also subject to state approval and applicable product availability.
Frequently Asked Questions
-
No. The Premium Chronic Care Rider is optional and includes an additional charge.
-
The carrier states that the rider charge is based on the insured's age, rate class and death benefit.
-
You must be unable to perform without substantial assistance at least two Activities of Daily Living for at least 90 continuous days, or require substantial supervision because of severe cognitive impairment, as defined by the rider.
-
According to the current carrier material, there is no waiting period for the Premium Chronic Care Rider. You still must satisfy the rider's qualification requirements.
-
At policy issue, you can select a 2% or 4% monthly payout option, subject to applicable limits. You may reduce—but not increase—the payout percentage after issue.
-
Yes. The carrier states that benefits can be used for any purpose, including medical and care expenses.
-
The PDF says there are no restrictions on how the benefit is used, but it doesn't specifically explain a receipt-submission process. I would therefore not make a “no receipts required” claim on the website based solely on this material.
-
Yes. Accelerated benefits reduce the death benefit and cash value otherwise payable under the policy.
-
Unused benefits remain available as a death benefit according to the policy. The carrier illustrates a $500,000 policy where $300,000 is accelerated and the remaining $200,000 is paid when the insured dies.
-
The carrier states that the rider can accelerate up to $3 million of death benefit, subject to the policy and rider provisions.
-
Yes. Benefit payouts are subject to the applicable IRS per-diem limit at the time of claim.
-
No. The carrier material states that this rider is not available in California or New York.
-
Potentially. National Life's disclosure states that receipt of accelerated benefits may be taxable and may affect eligibility for public assistance programs. Clients should consult appropriate tax and social-service professionals regarding their circumstances.
Is Premium Chronic Care Right for You?
If you're considering life insurance and are also concerned about what could happen financially if you experience a chronic illness, it may be worth exploring whether additional chronic-care protection fits your needs.
We can help you compare:
Living Benefits that may already be included
Premium Chronic Care
Long-Term Care solutions
so you understand what you're actually paying for and how each benefit works.
The Premium Chronic Care Rider is optional, includes an additional charge, may be subject to exclusions and/or limitations, and may not be available in all states. It is not available in California or New York according to the current carrier material. Premium Chronic Care benefits accelerate the life insurance death benefit; payment of accelerated benefits reduces the cash value and death benefit otherwise payable under the policy and may reduce or eliminate other policy or rider benefits. Monthly benefit options and amounts are subject to policy terms, rider provisions and applicable IRS per-diem limits. Receipt of accelerated benefits may be a taxable event and may affect eligibility for public assistance programs. Consult appropriate tax and social-service professionals regarding your individual circumstances. Product guarantees depend on the claims-paying ability of the issuing company. This page is for educational purposes and is not tax or legal advice.