Living Benefits- 5 Reasons They Make your Life Insurance Policy the M.V.P. of your Finances
Living Benefits? I get it, they are fairly new to the life insurance industry but they need explained and known to the consumer.
Living benefits can make life insurance seem a little more purchase friendly. Living benefits allow you to take advantage of your life insurance policy. You don’t even have to pass away! Before living benefits came along life insurance was a purchase no one wanted to make and who can blame them! You see no benefits until it’s too late! America is a Country that decides to avoid the topic of death at all cost. It doesn’t matter if the discussion is about the possibility of their own death or a loved one.
Death is not a discussion society likes to have. Why is this? Well, it’s very simple, nobody wants to think of the day that it’s all said and done. You most likely see life insurance as something where the benefits only come after death. The good news is, another option exists and you should consider it. Living Benefits change the game and how to think about life insurance.
Let’s begin taking a look at life insurance from another angle. What can we get from this insurance policy? What could benefit us from passing and make it worth spending all those monthly premium dollars? Living benefits is the answer.
Let’s jump right into it!
Living Benefits- A Big Boost to Financial Security
Let’s examine the top 5 reasons to find a Life Insurance Policy that Includes Living Benefits.
Living Benefits does not mean “whole life policy” or cash value
First off to begin let’s cover what a living benefit for life insurance entails. The old school thought of living benefits with life insurance would consist of purchasing a “whole life” policy. This is because you could see the benefits of the cash accumulation within the policy. The living benefits I’m referring to in this discussion are much different.
Reason #1- During the time of Critical Illness One Thing I can Guarantee to Happen- Income will Fall- Debt Will Rise- So how do we stop the bleeding? Living Benefits!
Take a look at the cost published by, The American Heart Association. You and I can both agree that these examples would not be good for our families financial future. The best part of the living benefits, it doesn’t have to be hospice care or definite to result in death for it to trigger the benefits! Many different events and triggers can result in the benefit being placed in your pocket!
Reason #2- 60% of U.S. Bankruptcies filed each year are a direct cause of critical and terminal illness care families endure. Don’t worry, Living Benefits can help.
I get that this is another of those moments where you do not want to discuss the truth of the matter at hand. Bankruptcy caused by medical expenses can be avoided by finding the correct policy. Living Benefits can stop the destruction of ongoing medical cost and medical care needed. So many different medical reasons that deplete your finances can arise at any moment. The main problem is, nobody ever asks for the solution! As an Independent Life Insurance Agent, I often have to introduce these benefits from start to finish to my clients! The truth is, you are not aware of living benefits or that they even exist! This is no fault of your own, but the fact is, it is not available in large amounts online yet or not emphasized enough in the life insurance industry.
Reason Number 3- The Tax Advantages! Yes Tax Breaks and Living Benefits. It’s a Win Win!
It’s not a secret in the life insurance industry that it is still one of the things you and I can enjoy the benefits of a tax break from. Death benefits are still paid out tax-free in almost all circumstances.
Structured cash value withdrawals can be very tax-advantaged! Most consumers want to discuss policies increasing in cash value. They often do not consider the fact that’s it also growing tax-deferred. This can be a huge benefit for all consumers and for all sound financial plans.
Reason Number 4- Your Family Depends on the Life Insurance. You and Your Family Depend on the Living Benefits.
Yes, this one is quite simple and I intend on keeping it simple. For the difference in cost which we will cover in reason number 5, it is insane not to consider looking into life insurance that includes living benefits. Your family may depend on a life insurance policy before the times comes to host a funeral for you. You may rack up unbelievable amounts of debt and medical bills. At this point, the death benefit may only be able to put a small dent in the financial damage.
Get all options and information Explained. Ask about Living Benefits!
Do yourself and your family a favor and ask your Life Insurance Agent to explain the options you have. Ask your agent to shop your options for you for what could be the best fit. Find the best option to protect you and your family’s financial future. One thing I can promise you to happen in one’s life – Death.
One event likely to happen in life- the need for chronic, critical or terminal care!
Why not let your life insurance policy help in the event of your medical care? Especially if the cost is the same or not far from it?
Reason Number 5- The Cost Difference! Cost Difference of Life Insurance with and without Living Benefits
Life Insurance Policies that include these living benefits often cost nothing more! This holds true even compared to policies that do not include them. Yes, often times, policies can require a higher premium based on the living benefits it provides. Often times this is due to how you can collect on these benefits as well. Some life insurance carriers have what you and I know as life and health triggers. A trigger could be criteria needed by the Life Insurance Carrier to pay the benefits to you. This may include an extended stay in a hospital or a cancer diagnosis.
These triggers activate the payment for such critical and chronic care to be paid to you. The more medical triggers that allow you to collect the living benefits, the better, so find a policy that includes them! Speak to a life insurance agent familiar with these options that can walk you through your options.
In conclusion, and to keep things short and sweet, don’t ignore the great benefits that you should have in your life insurance policy; especially for hardly any extra cost. It is a costly mistake that could save you thousands or hundreds of thousands in the future. You need to speak to an experienced independent Life Insurance Agent that can help you see your options. Find a life insurance policy that will provide you with the most bang for your buck! You deserve to get more out of your life insurance than the typical peace of mind!
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Article Published 3-26-2018 by Joshua Martin
President/ Owner- Martin Insurance and Financial Services Team LLC All Rights Reserved.