Jay Taylor, a 63-year-old grandfather from Newport Beach, California, initially thought he had a bad case of the flu. After an ambulance ride, a hospital stay, and numerous blood tests, he received a devastating diagnosis: leukemia. Faced with this life-altering news, Taylor quickly retrieved his life-insurance documents, which had been stored away for over two decades. “One of the first things you think about when a doctor says you have incurable cancer is, ‘How will I protect my family?'” he explained.
Life-insurance policies often include accelerated-death benefits, which allow policyholders to receive a portion of their death benefit while still alive if they are diagnosed with a terminal illness. However, accessing these funds can be more complicated than expected.
Taylor’s experience highlights the wrenching realities faced by individuals with terminal illnesses who rely on their life insurance policies for financial support during their remaining time. The accelerated-death benefit feature is designed to provide cash before a person dies, helping to cover medical expenses, lost income, or other financial obligations. Despite its intended purpose, the process of obtaining a payout can be challenging for many policyholders.
