LIVING BENEFITS EXPLAINED
What is Living Benefits Life Insurance?
Living Benefits life insurance is the new hybrid life insurance that can advance your life insurance death benefits early in the event you develop a serious illness such as a heart attack, cancer, or dementia. The cash from the life insurance is not restricted and can be used for income replacement, medical bills, or family expenses.
Sadly in America, our odds of becoming sick or needing long term care as we age are high.
1 in 3 Americans will develop cancer in their lifetime*
39.3% chance of developing cancer in their lifetime*
37.7% chance of developing cancer in their lifetime*
*2018 American Cancer Society
Men and Women over age 65
70% chance of needing long term care*
2018 National Institute of Aging*
Here’s how a living benefits life insurance policy works:
If you develop any one of three major conditions:
1. critical life threatening illness such as: heart attack, stroke, invasive cancer, kidney failure
2. chronic long term illness such as paralysis, dementia, or Alzheimers disease
3. terminal illness, you would be eligible for early benefits.
Sam (45) had a heart attack and needed bypass surgery.
He had a $1,000,000 living benefits life insurance policy but needed $250,000 to offset his lost of income, pay his medical bills, and take care of his family expenses.
Sam's condition qualified him to receive his life insurance benefits early. His doctor filed a report on his behalf and 3 weeks later he received a check for $250,000.
($1,000,000 - $500,000) x 50% = $250,000
(Original Death Benefit - Accelerated Death Benefit) x Discount rate = Lump Sum of cash today
After his accelerated benefits, Sam still has $500,000 in life insurance left.
Living benefits life insurance can act like a financial safety net for families and businesses offering more benefits at the same cost of traditional life policies.