When shopping for life insurance, the term, living benefits comes up frequently. So, what are living benefits? Life and Financial Expert Jerry Angel explains why the new life insurance policies are better than the old. Watch the video below to learn about living benefits and how they truly benefit policyholders.
What Are Living Benefits?
A common question we like to ask is, “Do you have the old policy or the new policy?” Until a few years ago, many life insurance policies did not have additional benefits except for the death benefit. When a person dies, they, of course, pay the family the death benefit. However, now, life insurance policies can do a much better service for the client by attaching three living benefits.
Regarding these living benefits, the first one is for terminal illness. If someone is diagnosed with a condition and has a life expectancy of only a few years, then they can use the death benefit ahead of time to help with expenses. The second one is the critical illness benefit. Critical illness includes cancer, strokes, or heart attack. Again, they can partake in the death benefit and apply it to their medical expenses.
The last one is the chronic illness benefit. It is probably one of the most popular because it deals with long-term care. People are quite concerned about long-term care. Consequently, they can use part of their death benefit. Most companies have set it up so that you can use the majority of the death benefit to help pay for long-term care and the surplus of costs, especially since they are extremely expensive. So, the new policies contain terminal, critical, and chronic illness benefits, and they each have their advantages for clients.
Life Insurance Questions?
We hope that this information on living benefits is useful to you.
If you’d like to learn how we can help you plan your retirement, call Empower Brokerage at (888) 539-1633 to speak to one of our Life and Annuity experts or leave a comment down below.
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This Article Was Updated On 02/15/2024.