How Benefits Are Paid

In the event of your death, your beneficiary(ies) normally will receive a lump-sum benefit equal to the coverage amount in force at the time of your death. However, your beneficiary(ies) may elect another form of benefit payment, such as installment payments, according to the terms of the insurance contract.

Generally, the benefits paid to your beneficiary(ies) will not be taxable.

Terminal Illness Benefit (Accelerated Death Benefit)

If you are not expected to live more than 12 months (as certified by a doctor), a terminal illness benefit may be payable. This benefit payment is intended to assist with the medical and related expenses incurred as a result of the illness, and which may not be covered by any other coverage you may have (such as medical coverage).

The maximum terminal illness benefit is 50% of the life insurance coverage amount, up to $150,000. The minimum benefit amount payable is $5,000.

This benefit payment is not taxable. However, any life insurance benefits payable in the future to your beneficiary(ies) will be reduced by the amount of terminal illness benefits paid.

For more details on the terminal illness benefit, see Claim Procedures.