Benefits and Riders

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How do these riders work?

The Accelerated Benefit Riders (ABRs) are offered for no additional premium. However, the accelerated benefit payment will be less than the amount of death benefit requested because it is reduced by an amount calculated based on evaluation of the insured’s future expected mortality at the time the benefit is exercised as well as an administrative fee of up to $500 assessed when the benefits are elected. See acceleration amount limitations below.


Three separate riders may provide for the payment of an accelerated benefit which cover the following conditions:

  • Accelerated Benefit Rider for Terminal Illness (Policy Form Series: ABR14-TM): For use if an eligible insured has an illness or chronic condition that is expected to result in death within 12 to 24 months, depending on state
  • Accelerated Benefit Rider for Chronic Illness (Policy Form Series: ABR14-CH): For use if an eligible insured is unable to perform two out of six activities of daily living (bathing, continence, dressing, eating, toileting, or transferring) or is cognitively
  • Accelerated Benefit Rider for Critical Illness (Policy Form Series: ABR14-CT): For use if an eligible insured experiences a critical illness described in the rider after the issue date. Covered critical illnesses may be found in the Rider

California Residents:

  • A supplemental application is required to determine
  • The chronic and critical illness versions are not available for applicants age 65 and
  • Chronic illness is not available in conjunction with term coverage whether it is the base policy or a
  • The accelerated death benefit is an unrestricted cash


Minimum Policy Death Benefit to Obtain Riders:

  • Terminal Illness: $25,000
  • Chronic & Critical Illness: $50,000


Maximum Death Benefit Eligible for Acceleration

  • $2,000,000 (issue ages 0 through 65)
  • $1,000,000 (issue ages 66 or older)

Policies exceeding the maximum acceleration amount will still contain the Accelerated Benefit Riders; however, the owner will only be able to accelerate up to the maximum death benefit eligible for acceleration. For example, on a $4,000,000 policy (where eligible), the owner will only be able to accelerate $2,000,000 if issue age 65 or under at time of issue.


There is no minimum partial acceleration request; however, the partial acceleration will not be allowed if the policy’s face amount would be reduced below the minimum required for the product.

The accelerated benefit may be paid in a lump sum or applied to any settlement option under the contract that does not involve life contingent payments.

Not everyone that applies for acceleration will be eligible to receive accelerated benefits.

Eligible Accelerations:

If the primary Insured suffers a qualifying medical condition, the base policy and any additional riders on the primary Insured are eligible for acceleration. Likewise, if a spouse or other Insured party suffers a qualifying condition, their specific rider benefits will also be eligible for acceleration. The Children’s Term Rider is not eligible for acceleration.

Upon payment of the accelerated benefit to the owner, the policy or rider(s) providing the eligible death benefit will be treated as if the Insured has died if full acceleration is elected. In the event of a partial accelerated benefit, the policy or rider will be treated as if there has been a decrease to the face amount.

This Rider is automatically included in specified life insurance products in New York. There is no additional premium for the Accelerated Benefit Rider but an administrative fee not to exceed $300 will be deducted from the initial Accelerated Benefit.

In the unfortunate event, you are diagnosed with an illness that is expected to result in death within 12 months, you will be eligible to accelerate a portion of your death benefit in advance.

The maximum Initial Accelerated Benefit you may request is the lesser of 50% of the Eligible Death Benefit or $250,000. However, should you wish to initiate subsequent accelerations, the maximum eligibility of acceleration is limited to 80% of the Eligible Death Benefit or $400,000.

Upon death, any funds paid under the Accelerated Benefit Rider will be held as a lien against the death benefit in addition to any outstanding loan balances and interest charged to the policy.

How does this benefit work?

This Rider is automatically included on qualifying Signature Guaranteed Universal Life Insurance Policies. On each available option period, the rider allows you to surrender your policy in full and receive a return of your premiums paid subject to policy details.


The rider requires payment of the policy’s annual minimum premium to remain in-force. In any given year, if the policy’s annual premium payment is not satisfied you will be notified and have 60 days to make the payment. If the required payment is not paid, the rider will terminate and will not be eligible for reinstatement.


Rider Restrictions

  • The Cash-Out Benefit will be reduced by any loans or withdrawals.


Rider Details

  • You may only choose to Cash-Out during the 60 day period following each available option The Cash-Out Benefit will be reduced by any loans, withdrawals, or decreases.
  • Cannot be added after
  • The amount of the Cash-Out Benefit will depend on the option period the rider is exercised and the death benefit of the

At each option period, the Guaranteed Cash-Out Value will be the LESSER OF:

  1. A specified percentage of premiums paid OR
  2. The benefit maximum, which is a percentage of the death


The Rider Will Terminate When Any Of The Following Occur:

  • The policy’s minimum premium requirements are not met
  • The date the policy terminates or is surrendered in full
  • The 61st day after the last available option period

Note: Once the rider terminates, it cannot be reinstated.





Source: American National

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