A. Yes, the ABR is simple, effective and exceedingly useful, with the addition of the ABR to a whole life policy, it creates significant financial flexibilities for Whole Life policy holders as they age.
The Accelerated Benefit Rider allows insureds to accelerate a portion of the policy death benefit should they qualify as either chronically or terminally ill.
With the baby boom generation either in, or or fast approaching, retirement there is considerable need to plan for insurance protection - of all kinds. The difficulty for many people is a perceived lack of ability to pay for all the protection products they might want. With the addition of the ABR to an Ohio National whole life policy, now consumers can have the ability to cover multiple risks, with one policy.
No Cost to Add the Rider
There is no cost to add the rider. Instead, the cost is incurred when the benefit is exercised, and a lien is created against the final death benefit payable. The payments are intended to qualify as tax free under Section 101(g) of the Internal Revenue Code.