One of the biggest misconceptions about modern life insurance is the idea that it’s not going to be useful until after you’re gone. That’s simply not the case. And my friend Gary is living proof of that fact… You see, modern medicine is simply amazing. Back in 1950, the average American had a life expectancy of 68 years. That number has since grown by 20 years — to 88 — and many Americans are enjoying a much better quality of life in their golden years, as well.

Every aspect of healthcare from medicine to medical diagnostics and equipment is continuously evolving, constantly working to improve outcomes and survivability for patients suffering from virtually every ailment.

I won’t go into the specifics of Gary’s health situation (in the interest of privacy), but I can tell you that he was suffering from an advanced form of cancer.

Of course there’s the cliché of the cheerful cancer patient, but Gary fit that bill to a tee. He was cheerful, athletic, financially successful, and in great shape for a man in his 50s. His family handled the diagnosis well enough, but they must have felt some stressed as different types of treatment failed to have any effect.

Ultimately, Gary sat down with his wife and oncologist to have the kind of conversation that every cancer patient hopes they’ll never have…

Gary’s treatments had failed to slow his cancer, and there were no more options his insurance would cover.

I can’t imagine how his heart must’ve sunk hearing that.

But there was still one option, as his doctors later explained. It was an experimental treatment, still in the very early stages, but with a good probability of beating his cancer. The catch? Insurance wouldn’t pay for it.

This kind of challenge comes up more often than most patients expect.

Medical technology is improving so fast, and health insurance companies are relatively slow to adapt, so a number of potentially life-saving procedures often lack sufficient coverage.

Breast MRI screening, for example, can be used to pinpoint cancers that mammograms might otherwise miss. Yet since it’s such a new procedure, patients still have to pay hundreds of dollars out of pocket for each screening.

Gary was in the same situation. Except the bill for his uninsured procedure was going to be much larger than a few hundred dollars.

Once again, this is the kind of challenge that’s dreaded by anyone suffering from cancer or other chronic or terminal illness. What if there’s a treatment that’s not covered by your insurance, but could possibly save your life. How much can you comfortably afford for that?

That’s the kind of question no one wants to even think about … let alone break out notepads and pencils and do the math, then discuss it with their loved ones.

If the procedure works, then you can continue earning, but you could have the albatross of loan payments constantly hanging over your head. That could impact your future quality of life and potentially have a negative impact on relations within the family. If the procedure doesn’t work, your family could be left with a substantial medical bill.

Fortunately, Gary had a substantial and paid-up life insurance policy with an outstanding Critical and Chronic Illness Rider.

As the name implies, a chronic illness rider allows you to access a portion of your accumulated death benefit if you’re diagnosed with a qualifying chronic illness. You can use the resulting cash to pay or medical bills, long-term care, or other related expenses.

Thanks to his policy, Gary was able to easily afford the experimental treatment recommended by his oncologist … which finally sent his cancer into remission and ended his health crisis.

Gary’s still around all these years later — and as you can probably imagine, he won’t stop talking about how much he loves his life insurance! He’s worse than I am about it.

But it’s important to note that your Critical and Chronic Illness Rider isn’t just there for emergency procedures or experimental treatments. It can also provide a phenomenal alternative to long-term care insurance. Some policies also allow the rider to be activated in cases of severe cognitive impairment (like Alzheimer’s), which can open up critical new treatment opportunities for your family.

Note that this type of rider is often considered optional, so it’s not “automatically” included in most life insurance contracts. For everyone, especially for the millions of Americans who have family histories of cancer, chronic illness or cognitive impairment, I strongly recommend adding having one on your policy.

Depending on your contract, there may be fees and limitations involved in using your Critical and Chronic Illness Rider, so make sure you understand your terms.

Taking advantage of this rider will deplete your death benefit, too. If a policyholder is using it to pay for a $250,000 medical procedure, then that’s $250,000 that won’t be passed on to his heirs after his death.

In Gary’s case, the procedure allowed him to continue working for years into the future — during which time he was able to replenish and grow his death benefit — so it was a great investment.

And in the case of someone suffering from chronic illness or cognitive impairment, it could be advantageous to spend down the death benefit, ensure the very best end-of-life care, and avoid potentially divisive arguments about providing care within the family.

The only real alternative to a Critical and Chronic Illness Rider is a long-term care insurance policy, but those are often only slightly better than public assistance programs like Medicaid in terms of flexibility. That’s why only 3-4% of all Americans over 50 even have a long-term care insurance plan.

By comparison, a Critical and Chronic Illness Rider on your life insurance will generally be far more flexible, practical, and cost-efficient over the long-term.

These riders vary from one policy to the next, with various levels of fees, terms and limitations. Some policies offer no-cost riders that are more limited in scope and flexibility.

Other policies offer the option of a single lump sum payment (like Gary received for his treatment), or periodic payments that would be ideal for covering the expenses of an assisted living facility.

As always, pay close attention to the specific terms of your policy, and don’t hesitate to shop around for the life insurance policy that suits you best.

Key Takeaways

• Modern life insurance policies with Critical and Chronic Illness Riders provide vital liquidity that can fund cutting-edge medical treatments not covered by standard health insurance, protecting your health and wealth.
• Accessing a portion of your life insurance death benefit for chronic or critical illness offers flexibility and peace of mind, avoiding reliance on long-term care insurance or public programs like Medicaid.
• This rider supports continuity by enabling policyholders to invest in experimental or advanced treatments that can extend productive work years and maintain family financial stability.
• Be aware that using the rider reduces the death benefit, but it can be replenished over time and may enhance legacy planning when leveraged properly within a comprehensive wealth strategy.
• Choosing life insurance policies with optional riders for chronic illness and cognitive impairment prepares high-net-worth families and business owners for unforeseen health crises, aligning with intentional wealth management values.

Ready to see how this could apply to your wealth plan? Click the big yellow Clarity Call button and let’s map it out together.