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Case study: Chronic illness protection and leaving a larger legacy
September 23, 2024
Customers’ protection needs change over time, especially as they plan for potential costs of a chronic illness. Learn how a customer can gain chronic illness protection and leave a larger legacy by transferring their current policy to our blended solution.

Cover multiple protection needs when upgrading a customer’s coverage


Customers can feel an added sense of security when you exchange their current life insurance policy for a solution with a chronic illness rider. Upgrading their current coverage can also create a larger financial legacy by increasing their death benefit. Learn how Protective Indexed Choice℠ UL with the ExtendCare℠ rider could be an ideal upgrade for customers who want a guaranteed death benefit, cash value growth potential and chronic illness protection.


How it works for Emily, age 50

A mother being kissed on the cheeks by her daughters.

The scenario: Emily has an existing life insurance policy with a cash value of $100,000. She wants to retire at age 70, but the costs of a chronic illness could derail her plans. She also wants to leave a greater financial legacy to her family.


The challenge: Emily’s current policy doesn’t have the option for chronic illness coverage. She’ll need to purchase a new policy through a 1035 exchange to get the protection and higher death benefit she wants.


The solution: Emily’s financial professional suggests transferring her current policy to Protective Indexed Choice UL with the ExtendCare rider. Together, they explore a single-pay case design option to meet her goals. For a $100,000 one-time premium, the single-pay option offers:

  • $500,000 death benefit
  • Lapse protection to age 90
  • $12,300/month chronic illness benefit


What makes this solution different: With the single-pay option, Emily will maintain lifetime coverage, increase her financial legacy and receive a monthly chronic illness benefit if needed.


Consider this solution when customers need additional protection


Protective Indexed Choice UL with the ExtendCare rider can be the right fit when customers need to update their policy with chronic illness protection and are interested in more death benefit coverage. Explore our product page and contact your Protective representative for more information.



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This illustration assumes that the currently illustrated non-guaranteed elements will continue unchanged for all years shown. This is not likely to occur, and actual results may be more or less favorable than those shown. As a result, additional premium outlays may be required to keep the policy in force or to achieve desired results.

Protective Indexed Choice UL (UL-27) is a flexible premium universal life insurance policy issued by PLICO and PLAIC. Policy form numbers, product features and availability may vary by state. Consult policies for benefits, riders, limitations and exclusions. Subject to underwriting. Up to a two-year contestable and suicide period. Benefits adjusted for misstatements of age or sex.

Protective Indexed Choice UL is not a security investment and is not an investment in the market. Customers should be provided with costs and complete details about the terms, conditions, limitations or exclusions that apply to this policy.

The tax treatment of life insurance is subject to change. Neither Protective nor its representatives offer legal or tax advice. Consumers should consult with their legal or tax advisor regarding their individual situation before making any tax-related decisions. All payments and all guarantees are subject to the claims-paying ability of PLICO.

ExtendCare falls under IRC Sec.101(g) Accelerated Death Benefit guidelines and does not fall under health regulations. This differentiation could affect eligibility for public assistance programs such as Medicaid, Supplemental Income or others. Purchasers should consult a qualified advisor along with legal or tax advisor to determine if the rider will affect their initial or continued eligibility for public assistance programs or other tax-related decisions.

ExtendCare (ICC16-L638/L638 12-16) is issued by PLICO and PLAIC. Subject to underwriting and up to a two-year contestable and suicide period. Benefits adjusted for misstatements of age or sex. Consult policy for benefits, riders, limitations and exclusions. Policy form numbers, product features and availability may vary by state.

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