The Insurance Buying Guide: Lifetime Benefits Option

This option extends your benefit period from age 65 to your lifetime. This extension may apply to accident only benefits or to accident and sickness benefits.

Normally, it means that if the total disability is due to an accident and it occurs prior to age 65, benefits will be paid for the rest of your life, provided you remain totally disabled.

Most companies will place some time limitations for the lifetime sickness benefit. That is, the disabling sickness must begin prior to a specified age, such as 50 or 55. A policy providing lifetime sickness benefits might state, if total disability, due to sickness, begins at age 55 or earlier, total disability benefits will be paid for the lifetime of the insured. If total disability begins at age:

• 56 -- total benefits are paid to age 65, then 90 percent of the benefit will be paid for the lifetime of the insured;
• 57 -- total benefits are paid to age 65; then 80 percent of the benefit for the lifetime of the insured;
• 58 -- total benefits are paid to age 65; then 70 percent of the benefit for the lifetime of the insured; and so on.

The progression of benefits would continue in this manner until age 65. If the total disability began at age 65 (typically, the policy is not renewed past age 65), then the payment of total disability benefits would be limited to one or two years.