What are living benefits and why are they important?

You may know that life insurance can help provide a death benefit and 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 benefits1 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.

Speak to a professional

If you’re interested in learning more about living benefits talk to your agent about how living benefits can help strengthen your financial strategy.

1. Accelerated Death Benefits (living benefits) are subject to eligibility requirements.

For Term Insurance, an administration fee is required at time of election of an accelerated death benefit. The face amount will be reduced by the accelerated death benefit amount. Since benefits are paid prior to death, a discount will be applied to the face amount accelerated. As a result, the actual amount received will be less than the amount of face amount accelerated.

For Permanent Insurance, an administrative fee is required at time of election for the Chronic or Terminal Illness benefit. There is no administrative fee when the Critical Illness benefit is elected. The death benefit will be reduced by the amount of the death benefit accelerated. Since benefits are paid prior to death, a discount will be applied to the death benefit accelerated. As a result, the actual amount received will be less than the amount of the death benefit accelerated.

ACCELERATED DEATH BENEFIT ENDORSEMENT – CRITICAL ILLNESS IS NOT HEALTH INSURANCE NOR IS IT INTENDED TO REPLACE HEALTH INSURANCE.

ACCELERATED DEATH BENEFIT ENDORSEMENT – CRITICAL ILLNESS IS NOT DISABILITY INSURANCE NOR IS IT INTENDED TO REPLACE DISABILITY INSURANCE.

ACCELERATED DEATH BENEFIT ENDORSEMENT – CHRONIC ILLNESS IS NOT LONG TERM CARE INSURANCE NOR IS IT INTENDED TO REPLACE LONG TERM CARE INSURANCE.

California applicants are subject to additional underwriting requirements.

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.

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