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I LIFE INSURANCE YOU DON’T HAVE TO DIE TO USE By Michele Campbell, Independent Agent nsurance is changing the way Americans think about, purchase and use life insurance. The whole idea of life insurance is peace of mind. It feels good to have a sense of security knowing your loved ones are going to be taken care of if something happens to you. What if something happens to you and you don’t die? What if you suffer a major heart attack, stroke, or invasive cancer and don’t die? Would your family be able to maintain their standard of living if you were fi nancially impacted by a serious illness? Traditional life insurance is designed to provide security for your loved ones in the event of your premature death… but what if you could get life insurance you don’t have to die to use? There are Riders called Accelerated Benefit Riders that can be added to the policy when you apply or are already built into the policy. Newer plans are often including these riders at no extra charge. If any of the above situations happen to you while insured, you can receive a payout of a portion or most of the amount you are insured for, called the face amount, and when received is tax free income to you. This money can help tremendously during a very stressful time, allowing you to focus on healing instead of worrying about how you’re going to pay your bills. Here’s an example of the 3 common riders: (The descriptions can vary slightly with each insurance company.) Chronic Illness: Michele has been in the insurance business for over 25 years and specializes in Medicare, individual health and life insurance. She is passionate about helping her clients to find the right plan to fit their needs. She is an active member of the Gilroy Chamber of Commerce, Gilroy Rotary and Gilroy Leadership Class of 2015. Visit or call 408.848.2271. This rider allows the owner to accelerate some or all of the insured person’s base life insurance benefi t in the event the insured is diagnosed with a chronic illness or condition. To qualify for benefi ts under the Chronic Illness Rider, the insured must be diagnosed with a chronic illness, which is an illness or physical condition that was initially certifi ed by a licensed health care practitioner within the past 12 months and affects the insured person so that he or she: • Is unable to perform at least two Activities of Daily Living (ADLs); or • Requires substantial supervision by another person to protect the insured person from threats to health and safety due to severe cognitive impairment. ADLs: Bathing, Dressing, Toileting, Transferring, Continence, Eating GILROY • MORGAN HILL • SAN MARTIN JULY / AUGUST 2016 Critical Illness: This rider allows the owner to accelerate some or all of the insured person’s base life insurance benefi t in the event the insured is diagnosed with a critical illness or condition. A critical illness or condition is defi ned as one of the following: • Heart Attack • Major Organ Transplant • Stroke • Invasive Cancer • Blindness • End Stage Renal Failure • Paralysis • Amyotrophic Lateral Sclerosis (ALS-or Lou Gehrig’s disease) Terminal Illness: This rider allows the owner to accelerate some or all of the insured person’s base life insurance benefi t in the event the insured is diagnosed with a terminal illness. A terminal illness is defi ned as an illness or physical condition that is certifi ed by a physician to be reasonably expected to result in the insured’s death within 24 months from the date of certifi cation. MEDICARE INSURANCE The Secret to Getting a Pharmacy Discount With Medicare If you take numerous medications, such as medications for diabetes, high blood pres- sure, and high cholesterol, you could reach the coverage gap or “donut hole,” the point at which you and your Medicare Part D prescrip- tion drug plan together have spent $3,310 on medications, and will have to pay a larger share of the drug costs. That’s when it’s time to start to shop around for discounts. Many drugstores offer savings programs for people who pay for prescription medications out of pocket; in some cases, the pharmacy discount price is cheaper than the insurance co-pay. Some medications are older generic medica- tions, which discount programs price at $4 for a month’s worth or $10 for a 90-day supply— and sometimes even less. Once you hit the donut hole, it’s often cheaper not to go through insurance and just find a good discount. What could be confusing to a consumer with Medicare is that, CMS’ rules require a pharmacist to automatically use your drug Part D insurance unless you specifically say not to. Bottom line: Most drugstores will let people with Medicare use their discount program, but you’ll have to ask. 55