BENEFITS IN ACTION
Let Us See How This Worked for Some Families Like Yours
"Plan for the worse, hope for the best, your children will thank you for it"
Living Benefits Critical Illness Rider
Life was going great for Jane (42), who is the owner of a flourishing baby clothes store in San Francisco. She is a single mom with two kids Taylor (9) and Brooke (6).
On a routine mammogram, they discover a growth in one of her breast. The growth is biopsied for closer examination. When Jane meets her oncologist, she is diagnosed with papillary ductal carcinoma. The news is devastating. She grows concerned about how she can care for the kids, keep the store running, and maintain their financial situation.
Jane has a mastectomy, radiation treatment, and chemotherapy to beat her cancer. The chances of beating the cancer are promising, but the chemotherapy and radiation treatments make her too worn out and unable to work. Jane's medical expenses are going up while her income is going down. Money and credit are getting tight for her business and her family.
Luckily when Jane was healthy, she purchased a $500,000 Living Benefits Life insurance policy with a Critical Illness Rider. This rider advances your death benefits early if you have a qualifying illness such as a heart attack, stroke, or invasive cancer. The Living Benefits Critical Illness Rider lets Jane use her life insurance benefits now while she is undergoing treatment.
Jane activates the critical illness rider and her doctor submits a report to her insurance company.
After approval from the insurance company, Jane receives a lump sum of $150,000 to help maintain her business and take care of her family. With the money, Jane is able to hire a manager to run her business and a babysitter for the children while she recovers at home.
This is how it worked: Jane needed $150,000 in cash now.
Because Jane wants to receive her benefits now she will have to take a discounted amount which will be based on her age and prognosis. This is similar to winning the lottery and receiving your money in a lump sum today.
She accelerates $400,000 of her policy to receive $150,000 today.
Her $500,000 policy, after the acceleration of benefits, is now reduced to $100,000.
$500,000 - $400,000 = $100,000
Original Benefit - Accelerated Benefit = New Benefit Amount
One year later, Jane's cancer is in remission and Jane's family and her baby clothes store never missed a step because she was able to leverage her Living Benefits Life Insurance to keep her business and family going while she recovered from breast cancer.
If you would like to know more about Living Benefits contact us at the
Living Benefits Chronic Illness Rider
Frank is a software engineer with his wife Sabrina (37) and two children Sean 8 and Olivia 6. Sabrina is a pediatric nurse who is currently staying at home to take care of their young children.
One day at work, Frank says he doesn’t feel right. He becomes dizzy and begins to feel numbness on the right side of his face and right arm. The room starts spinning and he loses consciousness. His coworkers go to his aid, an ambulance is called, and he is rushed to the hospital.
Frank wakes up in the hospital but is unable to feel anything on the right side of his body. His face, arms and legs have no feeling. Frank has had a stroke at age 44.
Frank is in the hospital for a week and is transferred to an inpatient rehabilitation facility for 2 months for extensive physical therapy. His prognosis for full muscle control is questionable.
After extensive rehabilitation, Frank is able to go back home to their San Francisco 1917 Victorian, but he is having trouble safely moving around in the house, bathing by himself, eating on his own and getting up the stairs. Sabrina is concerned he will have a fall and injure himself.
Because of Frank’s inability to work, their income dramatically goes down and are burning through their savings. Their expenses, especially the medical expenses, have gone up exponentially. Frank’s disability from work is minimal and he has $500,000 in his 401K.
Taking care of her family exerts an emotional and physical toll on Sabrina and she is worried about their finances. Sabrina wants to get go back to work but needs help with Frank and the kids. Hiring an aid for Frank will costs about about $4600 per month or $55,200 per year while a babysitter is $1800 per month or $21,600 per year.
She sees that hiring help will cost their family $6400 per month, or about $76,800 for the year.
Fortunately for Frank and Sabrina, when the kids were small, they each purchased a $500,000 Living Benefits Life Insurance Policy with a Chronic Illness rider that provides benefits if you develop a long standing illness and cannot accomplish daily activities on your own.
Frank qualifies for the Chronic Illness Rider because he is unable, on his own, to do two out of six daily activities (Bathing, Eating, Dressing, Transferring, Toileting, and Incontinence)
Let’s see how it worked.
With the Chronic Illness rider, Frank is eligible to receive 2% of his total Life insurance benefits per month until he either does not need the money anymore or the full benefits are used up. Any benefits left over will remain as life insurance benefits.
Frank’s policy is $500,000 so he is eligible to receive 2% or $10,000 per month for his care.
Frank needed help for 15 months for a total of $150,000. $10,000 x 15 months = $150,000.
Frank accelerated $150,000 in benefits so now his Life Insurance Policy is reduced to $350,000.
$500,000 - $150,000 = $350,000
Original Benefit - Accelerated Benefit = Remaining Benefit
With this money, Frank and Sabrina were able to pay for Frank’s aid, childcare, and the mortgage and allow Sabrina to look for a job.
Two years later after much rehabilitation, Frank is doing great! He has regained strength in his right arm and leg and just uses a cane to walk. He is now happily working as a software consultant and Sabrina is working as a pediatric nurse in a local hospital.
Frank and Sabrina were able to weather the storm by leveraging their life insurance to provide income and financial stability for their family while Frank recovered from his stroke.
If you would like to know more about Living Benefits contact us at