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Living Benefits: The Best Kept Secret of Life Insurance

The primary reason most of you have life insurance policies is to ensure your loved ones will be taken care of after you die. But that’s only part of the story.

With some policies, you can access the cash value or accelerate the death benefit for your own use while you are still living. These options are usually referred to as living benefits and they may be the best-kept secret of life insurance. 

Think about those times when life surprises you. Having an extra source of income would really help when you are facing something unexpected. Here are some examples of situations where having a living benefit is a good idea.
Chronic or Terminal Illness

Each year in the U.S., chronic disease accounts for roughly 75 percent of the nation’s health care spending. This works out to about $5,300 per person. That could mean a true financial hardship when you are already suffering from a physical hardship.

The truth is many people simply are not prepared for a chronic, critical, or terminal illness. You might think that just because you have a health insurance or disability plan, you will be sufficiently covered in case of a sudden or serious health problem, such as a heart attack, stroke, or cancer diagnosis. The reality is that’s probably not true.

A great health insurance plan might cover a large part of the medical costs associated with such an illness. The part that many don’t consider is that there will likely be deductibles, copayments, and out-of-pocket expenses. 

Regardless of how old you are, how much money you make, or what kind of health coverage you have, two things are inevitable in the case of an unexpected illness: Your expenses will go up, and your income will go down — resulting in debt that could leave you paralyzed financially.

While we can’t predict what the future holds for our health, we can plan ahead with a life insurance policy that includes living benefits.
 
Longer Retirement Than You Planned For

Another surprise that many people face is a retirement period that ends up being much longer than they plan for. 

It’s crazy to think that your golden years could last longer than your retirement savings. But people today are living longer, healthier lives and it could (and does) happen.
Unexpected Business Situations
If you’re a business owner then you know that daily surprises are part of the deal, and also part of the fun. And if we’ve learned anything in 2020, we have learned to expect the truly unexpected.

There are several ways you can utilize the power of a life insurance policy with living benefits to improve the stability of your business. 

Entice key employees to stay. Life insurance is a valuable benefit to offer your employees.  Attract top talent. Use a life policy as part of your executive compensation package. Ensure an orderly transfer of your business interests. Provide the funds your heirs need to make the business run smoothly. Act as collateral for a bank loan. Get the capital you need for your business.
We know what challenges life can throw your way. Life insurance offers a range of solutions for you. And that’s no secret.

Call me at 830-832-2682 to learn more about the Living Benefits of Life Insurance and the type of policy that will work for you.

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