Policies issued by American General Life Insurance Company (AGL), Houston, TX. ABR payments may be limited by the contract or by outstanding policy loans. Death benefits and policy values, such as cash values, premium payments and cost of insurance charges if applicable, will be reduced if an ABR payment is made. ABR payments may affect eligibility for, or amounts of, Medicaid or other benefits provided by federal, state, or local government. The federal, state, or local tax consequences resulting from payment of an ABR will depend on the specific facts and circumstances, and consequently advice and guidance should be obtained from a personal tax advisor prior to the receipt of any payments. This ABR pays proceeds that are intended to qualify for favorable tax treatment under section 101(g) of the Internal Revenue Code. Some ABRs and all LTCI are conditioned upon the insured not being able to perform two or more of the activities of daily living or being cognitively impaired. LTCI coverage may include reimbursement for the cost of a nursing home, assisted living, home health care, homemaker services, adult day care, hospice services or respite care for the primary caretaker and the benefits may be conditioned on certain requirements or meeting an elimination period or limited by type of service, the number of days or a maximum dollar limit. LTCI provides reimbursement for necessary care received due to the inability to perform activities of daily living or cognitive impairment. ABR payments are unrestricted and may be used for any purpose. An ABR allows the insured to access a portion of the life insurance policy’s death benefit while living. The policy is not a Medicare supplement.ĪBRs and LTCI provide different types of benefits. The rider does not provide long-term care insurance subject to California insurance law, is not a California Partnership for Long-Term Care program policy. It is a life insurance benefit that gives you the option to accelerate some of the death benefit in the event the insured meets the criteria for a qualifying event described in the policy. Compounding - A simple but powerful investment strategyĪn Accelerated Death Benefit Rider (ABR) is not a replacement for Long Term Care Insurance (LTCI).Upcoming Student Loan Repayments Likely to Test Many Retirement Dreams.How a financial expert can help you reach your money goals.Portfolio diversification and why it’s important.Modernize your K-12 retirement plan with vendor consolidation.Action Planner Series: Move your financial future forward.Coordinating Social Security benefits with lifetime income from annuities.Understanding IRAs and which one may make sense for you. Behind the scenes of life insurance underwriting.Safeguarding the future: Determining your life insurance needs.Small money moves that make a large impact.Beneficiary designations: 5 critical mistakes to avoid.How to build an emergency savings account.Get smarter about your retirement income strategy.Support your retirement with life insurance.Dial up your lead generation opportunity.
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