Understanding Americo Living Benefit Riders: What They Cover and Why They Matter

When planning for life’s uncertainties, many people purchase life insurance for the peace of mind it provides their loved ones. But what if your life insurance could support you while you’re still alive? That’s exactly what Americo’s Living Benefit Riders are designed to do. These riders can help policyholders access a portion of their life insurance death benefit in the event of a serious illness, offering financial relief when it’s needed most.

What Are Americo Living Benefit Riders?

Americo Living Benefit Riders, also known as accelerated benefit riders, allow policyholders to receive a portion of their death benefit while they are still alive if diagnosed with a qualifying illness or medical condition. These riders are typically included at no additional cost with many Americo life insurance policies.

The purpose of these riders is to provide early access to funds in the case of a major health crisis, when expenses such as medical bills, long-term care, or lost income could create serious financial strain.

Types of Americo Living Benefit Riders

Americo offers multiple types of living benefit riders, each tailored to different medical conditions. These typically include:

1. Terminal Illness Rider
If the insured is diagnosed with a terminal illness and given a life expectancy of 12 to 24 months or less (varies by state), they may be eligible to receive up to 95% of the death benefit. This payout can be used for any purpose, from medical treatments to settling personal affairs.

2. Chronic Illness Rider
If the insured becomes permanently unable to perform at least two of the six activities of daily living (ADLs)—such as bathing, dressing, or eating—or experiences cognitive impairment like Alzheimer’s, they may qualify for an early payout. This rider is especially helpful for covering long-term care or home health care expenses.

3. Critical Illness Rider
In the event of a major medical diagnosis like cancer, heart attack, stroke, or organ failure, the critical illness rider allows access to part of the policy’s death benefit. The percentage available typically depends on the severity of the condition and the terms of the policy.

How Do the Living Benefit Riders Work?

If a qualifying medical event occurs, the policyholder must submit a claim to Americo along with supporting medical documentation. Once the claim is reviewed and approved, a portion of the death benefit is paid out early.

Key facts to know:

• The accelerated portion reduces the final death benefit.
• Administrative fees or interest may apply.
• The funds can be used for any purpose, with no restrictions.

For example, a policyholder with a $250,000 death benefit who qualifies under the critical illness rider might be able to access $50,000 to $100,000 upfront, depending on their condition. The remaining benefit would be adjusted accordingly for beneficiaries.

Policies That Include Americo Living Benefit Riders

Americo includes living benefit riders in a number of their life insurance products, such as:

• HMS Plus Series Term Life
• HMS Plus 125
• Premier Living Indexed Universal Life (IUL)
• Eagle Premier Final Expense (includes terminal illness rider)

Each policy has its own criteria for benefits, age limits, and payout structures. Riders may vary slightly depending on state regulations, so it’s important to review the policy documents or speak with an agent.

Why Choose a Life Insurance Policy With Living Benefits?

Incorporating living benefits into your life insurance policy can be a smart strategy for several reasons:

• Immediate Access to Funds: You don’t have to wait until death to receive value from your policy.
• Flexible Use: There are no restrictions on how the funds are used—pay off debt, fund treatment, cover caregiving, or protect your household’s income.
• Peace of Mind: You’re covered not just in the future, but in the event of a serious diagnosis that affects your quality of life today.
• No Additional Cost: Americo typically includes these riders at no extra premium, making them a built-in advantage.

Who Should Consider Americo Living Benefit Riders?

These riders are beneficial for a wide range of policyholders, including:

• Families who want broader protection than just a death benefit
• Individuals concerned about healthcare costs or caregiving needs
• Self-employed people who don’t have group disability coverage
• Seniors planning for the possibility of needing long-term care

Whether you’re young and healthy or nearing retirement, having access to accelerated benefits can add significant value to your life insurance plan.

Claims Process and Considerations

Filing a claim involves submitting:

• A completed claim form
• Medical records or physician certification
• Any required supporting documentation

Americo’s underwriting and claims process is known to be straightforward, but turnaround time may vary based on the complexity of the claim and condition being reviewed.

Important considerations:

• The payout reduces the amount left for your beneficiaries
• Not all riders are available in every state
• Early access may have tax implications—consult a tax advisor

Final Thought

Americo Living Benefit Riders bring modern flexibility to traditional life insurance. They offer you the ability to receive financial support during some of life’s most difficult moments—without having to wait until a policy pays out after death.

With no extra cost and broad coverage for terminal, chronic, and critical illnesses, these riders provide meaningful protection that adapts to your real-life needs. If you're looking for a life insurance solution that supports both your future and your present, Americo’s offerings are well worth considering.

Speak to a licensed insurance professional to learn more about the options available in your state and how to tailor a policy to meet your goals.