Accelerated benefit rider also pays at 'chronic illness.'(National Life Insurance Co.'s Accelerated Benefits Rider pays for chronic as well as terminal illness)(Product Announcement)

National Underwriter Life & Health-Financial Services Edition, April, 1998 by Koco, Linda

National Life of Vermont, Montpelier, Vt., has ramped up its Accelerated Benefits Bider for most life policies to pay benefits for "chronic illness" as well as terminal illness.

The enhanced rider, which is being offered at no cost to existing and new issue traditional life policies having $28,000 or more in face amount, was spurred by the Health Insurance Portability and Accountability Act of 1996.

That act sets out conditions under which accelerated benefits from life policies can be treated, for tax purposes, as payment of a death benefit, thus enabling policyowners to receive the payouts tax-free.

The qualifying events are terminal illness and chronic illness.

Up until now, says Michael Pinkans, vice president-nonregistered...

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