Living Benefits Life Insurance| “You don’t have to die to use it”.
Living Benefits Life Insurance|“You don’t have to die to use it”.
The majority of people who buy life insurance do so to provide financial security to a beneficiary when they die. But what happens if you get a heart attack, have a stroke, or get cancer, and you don’t die? How do you have access to the death benefit of your life insurance policy? Having a life insurance with living benefits just solved that problem. These types of policies will provide you with a portion of the death benefit, should you find yourself in this unfortunate situation.
Here’s what you need to know about living benefits and how they might help.
What Is Life Insurance with Living Benefits?
Life insurance with living benefits is a rider (provision) that is added on to most life insurance policies at no additional cost to you. This allows the policyholder to access a portion of the death benefit while he/she is still alive.
It is also called an accelerated death benefit because you can cash in on some of your death benefit amounts, if you have 6-24 months left to live, depending on the insurance company and the policy. Most companies put a limit on the amount that can be accelerated (accessed in advance), which is typically 25-75% of the death benefit.
The Living Benefits Riders, or Accelerated Benefit Riders (ABRs) help provides peace of mind at a time when the LAST thing you need to worry about is money. It allows the policy owner to have access to an early (accelerated) payout of the death benefits within your policy if the insured is diagnosed with a qualifying illness or injury.
Pays a benefit if you are diagnosed with a terminal illness resulting in life expectancy of less than 12 months (24 months in some states). This can be used for experimental medicine, prepare for final expenses or for any other purpose you feel necessary.
Pays a monthly benefit should you become diagnosed as chronically ill and unable to perform two daily activities such as bathing, dressing, eating, or due to cognitive impairment. This benefit is paid annually (up to 24% of your death benefit). Policy must be in force for 2 years.
Pays a lump sum benefit should you suffer from a triggering illness such as cancer, heart attack, stroke, Lou Gehrig’s disease (ALS), blindness due to diabetes, kidney failure or major organ transplant, and more!
Are You Prepared for an Unexpected Illness?
According to the American Cancer Society, there will be an estimated 1.7 million new cancer cases diagnosed and more than half a million cancer deaths in the U.S. this year.
The American Heart Association reports that cardiovascular disease is the leading global cause of death, accounting for more than 17.3 million deaths per year, and that number is expected to exceed 23.6 million by 2030.
Furthermore, the U.S. Department of Health and Human Services says the average cost for long-term care in the United States exceeds $6,000 per month for a semi-private room in a nursing home and $3,000 per month for care in an assisted living facility.
Many people are simply not prepared for a chronic, critical, or terminal illness. They think that just because they have a health insurance or disability plan, they will be sufficiently covered in the case of a sudden or serious health problem such as a heart attack, stroke, or cancer diagnosis. The fact is, that’s probably not true.
A great health insurance plan might cover a large part of those medical costs, but there could be deductibles, co-payments, and out-of-pocket expenses to deal with first.
Regardless of how old you are, how much money you make, or what kind of health coverage you have, two things are inevitable in the case of an unexpected illness: your expenses will go up, and your income will go down—resulting in debt that could leave you paralyzed financially.
According to a study by Harvard researchers, over 60 percent of all personal bankruptcies in the United States was a direct result of medical problems. What’s even worse is that nearly 80 percent of the people included in this study who were suffering from a critical condition had health insurance at the start of their illness. This clearly demonstrates that additional protection is needed—more than what many of the health and/or disability plans are able to provide for you.
That’s where life insurance with living benefits—also known as an Accelerated Death Benefit Rider—can help you when you need it most.
One plan with multiple benefits (Living Benefits Life Insurance)
- Pays death benefit
- Pays accelerated benefit for critical illness
- Pays living benefit if you are unable to perform daily living activities
What Happens When You Have Life Insurance with Living Benefits?
If you should experience any qualifying critical, chronic, or terminal illness—such as a heart attack, stroke, or cancer, to name a few—you would have the option to collect part of your death benefit to help pay for expenses associated with your illness.
Of course, the amount of money your beneficiary would receive as part of your death benefit would be reduced by that amount. But, having the option to accelerate your death benefit funds could be a critically important step in helping you and your family through an unexpected and unfortunate crisis. It might even be the difference in helping you enjoy a long and healthy life after your illness.
A licensed Life Exchange Insurance Services agent can help you. Just call 904-203-1763 and ask how you can add living benefits to your traditional life insurance coverage.