What are Living Benefits?
There’s more to life insurance than purchasing it to ensure financial comfort for your loved ones after you pass. After all, you may find that toward the end of your life, you may have a need for that money. What do you do then?
What about Living Benefits on a term life insurance policy?
Typically, Death Benefits are paid upon the death of the insured. However, there is a rider called Living Benefits or sometimes called accelerated benefit rider. When you sign up for life insurance, this is an option that you may want to explore. Basically, it offers you early payouts on a death benefit, only if your life expectancy diagnosis is 12 months or less. A policy holder who has been diagnosed with a terminal illness can often find they have huge medical bills. They are worried about mounting debt instead of concentrating on their family or even their own comfort.
What circumstances allow you to collect on Living Benefits on term life insurance policies?
With the toll of the emotional and physical struggles of a life-ending illness, the last thing you should worry about is financial hardship. With a Living Benefits rider, there are generally 3 circumstances that allow you to collect early on your policy.
- Terminal illness – In this circumstance, you are allowed to collect a portion of your death benefit in advance. There is no stipulation on what the money can be used for. It may help with finances, or perhaps allows you one last shot at an experience you enjoy, such as travel.
- Chronic illness – If you can’t perform daily activities that help yourself, such as dressing or feeding yourself, you may qualify to receive a portion of your benefits in advance. Certain parameters must be met, depending on your policy.
- Critical illness – If you’ve received a diagnosis that could mean certain death such as organ failure, heart attack, stroke or cancer, you may be eligible to receive a portion or all of your death benefit early.
How can I find out more about Living Benefits?
If you have questions about this rider, reach out to a reputable insurance agent like Ron L. Reed. At Ron L. Reed and Associates, our mission is simple, “To be Clear, Concise and Conversational with our potential and current clients. Our values are People Respect, Opportunity, Passion, Excellence and Loyalty.” RLR is a life insurance comparison service, shopping over 25-30 of the nation’s top companies. We work on behalf of YOU and not any life insurance company to find the best rates and products available on the market.
Give us a call or get an instant life insurance quote by filling out the form to the right.