What are living benefits and why are they important?Tuesday 25 August 2020 | Reading Time: 3 minutes
You may know that life insurance can help fill the income gap for your family and/or beneficiaries if you were to die unexpectedly. But did you know that life insurance can also be used while you’re living?
Death may not be the only risk you face on a daily basis. Being diagnosed with a serious illness can also have an adverse effect on your family’s finances, from the high cost of medical treatments, to missed work, home nursing care, and much more. Many families are not able to afford these kinds of expenses with their current income, making a difficult situation even more difficult.
Fortunately, there is a way to provide your family with some protection that could help alleviate the financial implications of this risk. Many life insurance policies come with living benefits that allow the policyowner to access a portion of their death benefit while living if certain qualifications are met. The money received can be used any way you choose, from paying hospital bills, to making up for missed work due to illness, and more.
To see how living benefits can add further protection to your family’s financial strategy and help guard against the unexpected and unknown, watch this real-life story about one man’s brush with death, and how living benefits helped him get through it.
If you’re interested in learning more about living benefits, download our consumer flyer, and talk to your agent about how living benefits can help strengthen your financial strategy.
Texas Residents: Receipt of acceleration-of-life-insurance benefits may affect your, your spouse’s or your family’s eligibility for public assistance programs such as medical assistance (Medicaid), Aid to Families with Dependent Children (AFDC), supplementary social security income (SSI), and drug assistance programs. You are advised to consult with a qualified tax advisor and with social service agencies concerning how receipt of such a payment will affect your, your spouse’s and your family’s eligibility for public assistance.