Life Insurance With "Living Benefits"

Technically it's a contract! The contract is between an insurance Policyholder and an Insurer (usually the Insurance company) where the insurer promises to pay a designated beneficiary(s) a sum of money (the benefit) in exchange for a premium, upon the death of an insured person (most often it is the policyholder). You are able to choose what type of Insurance you desire (Permanent or Term) and you are also able to add extra options to that insurance policy which we call Riders. These riders are icing on the cake to any policy.

So instead of going with the traditional insurance policy, Today you are able to create a benefit that covers you while you are Living as well as leave something for your beneficiary after you are gone. These are Living Benefits Riders (Accelerated Riders) - they include a chronic illness rider, a chronic illness rider, and a terminal insurance rider. These riders pay some or all of your death benefit while you are still LIVING. And Yes these wonderful Riders are available in Permanent and Term Policies.

Example #1:   If you have a $1,00,000 policy, and you are diagnosed with inoperable  cancer, you may be able to receive $700,000 of your death benefit. When you pass away, your heirs will receive the remaining $300,000. This help could help offset the financial stressors of an illness for both the insured and their family, protecting the income is the basis in mine. 

Example #2: You have a $400,000 policy and you had a stroke and the doctor says that it will take up to 4 months to recover, well you may be able to get $200,000 or more depending upon the severity and the rest is left for your beneficiary(s). 

Both examples above provided monies from the death benefit. We are also able to make sure your income stays in tack until you pass away or if you are married your income will continue until your spouse passes away.

So now all you have to do is decide if you want a Permanent or Term Insurance Policy. 

Well, what is the difference? 

 Well, Permanent is just what it is Permanent, for the life of the insured. Term Insurance is a rental option. You purchase insurance for a specific Term (it can be 1, 10, 20, or 30 years) period of time.  

Why would a person choose a Term versus Permanent Insurance?

 Well, that's a good question, but there are several answers to why someone selects a Term Policy, let's get the answers.

---Term Insurance is a good choice if you are concerned about your family having to cover large debts            ( Mortgage payments or credit card debt) if you pass away unexpectedly and Term Insurance premiums are less expensive than permanent insurance premiums. While most people hope they outlive their term policy one could have a rider called a return of premium rider which your premiums are returned to you tax-free.  

So You see, Life Insurance has come a long way, schedule an appointment and ask me how you can use these types of policies for kids' education, a kid's future to start a business, and leave a legacy for a grandchild, niece, or nephew.