Medical underwriting is required. The term life policy contains an accelerated benefit provision which will allow you, after the policy has been in force for two years, to request up to 50 percent of the face amount of your coverage as an early payment of the death benefit if you are diagnosed with a terminal condition and have a life expectancy of 12 months or less. The face amount of your policy will be reduced by the amount of the accelerated benefit requested. The accelerated benefit offered under this policy is intended to qualify for favorable tax treatment under the Internal Revenue Code of 1986. If the accelerated benefit qualifies for such favorable tax treatment, the accelerated benefit payment amount will be excludable from your income and not be subject to federal taxation.
Tax laws relating to the accelerated benefit are complex.
You are advised to consult with a qualified tax advisor about circumstances under which you could receive the accelerated benefit excludable from income under federal law. You are advised to consult with a qualified tax advisor and with social service agencies concerning how receipt of such a payment will affect you, your spouse, or your family's eligibility for public assistance. Health Care Service Corporation. All Rights Reserved.