Living benefits are features or riders on life insurance policies that allow the policyholder to access the death benefit while they are still alive. These benefits can be used to pay for a variety of expenses, such as:
Medical expenses associated with a terminal or chronic illness
Debt, such as mortgages or loans
Long-term care
Quality-of-life expenses, such as travel or hobbies
Living benefits can be especially helpful for people who are facing serious health challenges or who are nearing retirement. They can provide much-needed financial assistance in a time of need.
Here are some specific examples of how living benefits could help you:
If you are diagnosed with a terminal illness, you could use a living benefit to pay for expensive medical treatments or to make sure that your loved ones are financially taken care of after you pass away.
If you are diagnosed with a chronic illness, you could use a living benefit to pay for long-term care, such as home health care or assisted living.
If you are nearing retirement and have accumulated significant debt, you could use a living benefit to pay off your debt and improve your retirement income.
If you have a young family, you could use a living benefit to pay for college tuition or other expenses.
Of course, there are some limitations to living benefits. For example, may need to have a certain type of life insurance policy or meet certain medical criteria in order to qualify. Additionally, there may be fees associated with accessing living benefits.
Overall, living benefits can be a valuable financial tool that can help you meet your needs during difficult times. If you are considering purchasing life insurance, be sure to ask your insurance agent about the living benefits that are available.
As you review your insurance portfolio, here are some specific questions you can ask your insurance agent about living benefits:
What types of living benefits are available on my policy?
What are the eligibility requirements for each living benefit?
Are there any fees associated with accessing living benefits?
How can I use living benefits to pay for my expenses?
If you’re not sure if your policy includes living benefits, or if you think you’d like more information about adding them to your policy, don’t hesitate to reach out.