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Living Benefits
Most People think of life insurance as something that only benefits their loved ones after they pass away. However, modern insurance policies offer Living benefits, which allow policy holders to access a portion of their benefits while they're still alive. These benefits provide financial security in the face of unexpected health challenges, ensuring you and your family are protected when you need it most.
We'll break down what living benefits are, how they work, and why they're a crucial part of a well-rounded financial plan.
What are Living benefits?
Living benefits are features included in certain life insurance policies that allow you to access part of your death benefit while you're still alive. These benefits are typically triggered by serious medical conditions, such as a terminal illness, chronic illness, or critical illness.
Types of Living benefits:
Terminal illness Benefit - Allows you to access a portion of you policy's death benefit if diagnosed with a terminal illness (typically with a life expectancy of 12-24 months).
Chronic illness Benefit - Provides funds if you are unable to perform at least two out of six activities of daily living (ADLs), such as bathing, dressing, or eating, due to a chronic condition.
Critical illness Benefit - Offer financial support if you experience major health events such as a heart attack, stroke, cancer, kidney failure, or organ transplant.
Long-term Care Benefit - Helps cover costs associated with long-term medical care, assisted living, or nursing home expenses.
Why Are Living Benefits Importmant?
• Financial Protection - Helps cover medical expenses, home modifications, and daily living costs.
• Income Replacement - Provides financial support if a serious illness prevents you from working.
• Debt Relief - Can help pay off mortgages, loans, or other outstanding debts.
• Peace of Mind - Ensures you have financial resources available during life's unexpected challenges.
How do I access my living benefits?
You typically need to file a claim with your insurance provider and provide medical documentation proving eligibility based on your policy's terms.
Do I have to pay back living benefits?
No, living benefits are an advance on your death benefit, meaning the amount you withdraw will be deducted from the payout your beneficiaries receive.
Are living benefits included in all life insurance policies?
Not all life insurance policies offer living benefits. They are commonly found in permanent life insurance and some term life insurance policies with riders.
How much of my policy's benefit can I access?
This depends on your insurance provider and policy. Some allow you to access up to 50-90% of your death benefit.
Will receiving living benefits affect my eligibility for government assistance?
In some cases, accessing living benefits could impact Medicaid or Social Security benefits. It's best to consult a financial professional to understand your specific situation.
Protect Your Future with Emerald City Financial Solutions
At Emerald City Financial Solutions, we specialize in insurance solutions that offer living benefits, ensuring you and your loved ones have financial security during life's most challenging moments. Whether you're looking for a new policy or want to understand your current coverage, we're here to help.
Let's secure your future together!
Contact us today for a consultation
