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Thursday April 24th 2014

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Bill Would Let Life Policyholders Use ‘Living Benefit’

401kA bill that would allow life insurance policyholders to advance the payment of death benefits when they encounter costly and life-changing health conditions is moving in the state Legislature. Senate Bill 281 by Sen. Ron Calderon, a Democrat from Montebello, sailed through the Senate Insurance Committee Wednesday with unanimous approval. The bill will allow insurers to offer a type of life insurance benefit known as a “living benefit” paid while the insured is still alive. Depending on the policy, accelerated payments are allowed under triggers that include terminal illness, certain types of severe medical conditions and chronic illness according to a recent report in the Sacramento Business Journal.