has anyone taken advances from life insurance policy?

[Darlene Denise]

Rhonda: This article you are referring to is VERY different than opting to take an Accelerated Death Benefit from your insurance company. This rider became available in the industry within the last 10 years. The rider is generally a free rider and if your policy is older and does not have the benefit, you can request it be added at no charge now and then make a claim. You are receiving the proceeds of YOUR policy from YOUR insurance company due to the terminal illness provision and any remaining balance will stay in force as long as you pay premiums and will be paid to your designated beneficiaries.

You are NOT selling your policy, you are getting a percentage of your death benefits in advance due to terminal illness. Viaticals were popular prior to the Accelerated Benefit option back in the 80's as the article stated. They are rarely done now and rarely a good option.

The benefits are not taxable since they are death benefits from a life policy. Not true if you take cash value or sell your policy.

Many people do not even know they can do this and I have many private messages from ladies on several of the boards telling me that they successfully obtained needed benefits to help them with disabilitly and that they had no idea until I told them.

I NEVER encourage anyone to SELL a life policy. Always consult an attorney if you are even thinking about it.

Accelerated Death Benefits can be a very good option in the right circumstances. Ask your agent, benefits coordinator at work, your lawyer and your CPA for additional info and guidance.

Darlene