+ What is a chronic illness?
Chronic illnesses are conditions that can be treated but not cured. Chronic illnesses account for 70% of deaths and are the leading cause of disability in America according to the Centers for Disease Control. (The Power of Prevention, 2009)
Some chronic illness examples are:
- • Health disease
- • Malignant cancers
- • Diabetes
- • Alzheimer's disease
- • Dementia
- • Mental illness
- • Arthritis
- • Asthma and COPD
- • Kidney disease
As chronic illnesses progress, they can impact the health and safety of the afflicted, making it difficult to perform activities of daily living (i.e. bathing, getting dressed, eating, continence, toileting, getting up and down).
+ What are critical and terminal illnesses?
A critical illness requires extraordinary medical intervention without which the person would die, such as a major organ transplant or continuous artificial life support. It could also be a medical condition that would drastically limit a person's life span, such as:
- Coronary artery disease that requires surgery
- Permanent neurological deficit caused by a cerebral vascular accident
- End stage renal failure
Terminal illness, on the other hand, is a disease that cannot be cured or adequately treated and that is reasonably expected to result in the death of the patient within a short period of time.
+ What's the typical cost of care?
The cost of care for chronic illnesses can be absolutely staggering. According to the Centers for Disease Control, chronic illnesses account for 75% of U.S. health care spending.
The costs can be staggering.
| Current National Average | ||
| Type of Care | Length of Stay | Total Cost |
| Nursing Home – Private Room1 | 28 months | $207,080 |
| Nursing Home – Semi Private Room1 | 28 months | $185,370 |
| Assisted Living Facility | 28 months2 | $72,4463 |
| 1 Average nursing home stay: "How to Pay for Nursing Home Costs," US News & World Report, 2/26/2013. | ||
| 2 Median assisted living facility stay: 2014 Resident Profile, National Center for Assisted Living. | ||
| 3 Administration on Aging, 2010. | ||
+ How can life insurance help?
Providing for loved ones is a typical reason for purchasing life insurance. The death benefit provides a tax-free* source of funds for survivors, and if available, any cash value can be used for emergencies or supplemental retirement income. (* Proceeds from an insurance policy are generally income tax free and, if properly structured, may also be free from estate tax.)
Here at Voya FinancialTM, we've stepped up that protection with two riders that can be added to certain life insurance policies. These let your clients access the death benefit of their policy while they are alive.
| Chronic Illness Rider | Accelerated Benefit Rider |
| Pays benefits if your client becomes chronically ill. | Pays benefits for terminal or qualifying critical illness. |
| Optional at issue. | Automatically issued. |
| Additional underwriting required. | No additional underwriting. |
| Cost of insurance and annual administrative charges apply. | No additional premium or cost of insurance charge. An administrative charge will apply. |
| See full comparison in Producer Guide on page 7 and 8. It's important to note that the Chronic Illness rider is not Long-term care insurance. There are differences in benefit payments and requirements. For instance, with long term care, if the insured becomes eligible, proof of expenses incurred may or may not be required based on contractual terms. However, benefits paid from the Chronic Illness Rider can be used for any expenses and receipts and proof of payment are not necessary. |
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+ Training and Materials
Help minimize the financial and emotional impact a chronic illness or terminal illness can cause for your clients.
Call 866-464-7355 today to learn more.
