Living Benefits
Living benefits are additional features that can be added to a life insurance policy. These benefits provide financial protection to the policyholder in the event of a serious illness or injury. There are different types of living benefits that can be added to a life insurance policy:
As an insurance agent, you know the importance of life insurance for your clients. But have you considered offering life insurance with living benefits? This type of policy provides more than just a death benefit, it also offers financial protection while the policyholder is still alive.
What are Living Benefits?
Accelerated Death Benefit: This benefit allows the policyholder to receive a portion of the death benefit if they are diagnosed with a terminal illness. The funds can be used to cover medical expenses or other costs associated with end-of-life care.
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Critical Illness Benefit: This benefit provides a lump sum payment if the policyholder is diagnosed with a critical illness such as cancer, heart attack, or stroke. The funds can be used to cover medical expenses, lost income, or other costs associated with the illness.
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Long-Term Care Benefit: This benefit provides a daily or monthly payment if the policyholder needs long-term care due to a chronic illness or disability. The funds can be used to cover the cost of a nursing home, assisted living facility, or in-home care.
Critical Injury: Paralysis, coma, major burns, severe brain injury
Why Offer Life Insurance with Living Benefits?
Offering life insurance with living benefits can provide several advantages for insurance agents. Here are some reasons why insurance agents should consider offering this type of policy to their clients:
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Differentiation: Offering life insurance with living benefits can help insurance agents stand out from their competitors. This type of policy provides additional protection that traditional life insurance policies do not offer.
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Increased Sales: By offering life insurance with living benefits, insurance agents can increase their sales and revenue. This type of policy appeals to clients who are looking for comprehensive financial protection.
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Client Retention: Offering life insurance with living benefits can help insurance agents retain their clients. Clients are more likely to stay with an agent who offers a wide range of products and services that meet their needs.
Life insurance with living benefits is a valuable product that insurance agents should consider offering to their clients. This type of policy provides additional financial protection while the policyholder is still alive, which can be crucial in the event of a serious illness or injury. By offering life insurance with living benefits, insurance agents can differentiate themselves from their competitors, increase their sales, and retain their clients.
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Inspirational true stories told by individuals that survived their illness and used life insurance in more ways than one!
Terminal
If an eligible insured has an illness or condition that is expected to result in death within 24 months or less. 1
Chronic
If an eligible insured is unable to perform 2 of 6 activities of daily living for a period of at least 90 days or requires constant supervision to protect from threats to health or safety due to severe cognitive impairment.
The ADLs include bathing, continence, dressing, eating, toileting, and transferring.
Critical
Covered critical illnesses may include 2:
1. Heart Attack
2. Stroke
3. Invasive Cancer
4. End Stage Renal Failure
5. Major Organ Transplant
6. ALS
7. Blindness
8. Paralysis
9. Arterial Aneurysms
10. Central Nervous System Tumors
11. Major Multi-System Trauma (Major injury to three or more organs or systems) – Not Available in California
12. AIDS – Not Available in California
13. Severe Disease of Any Organ (resulting in significantly altered life
expectancy)
14. Severe Central Nervous System Disease (Parkinson’s, Huntington’s, Multiple Sclerosis, Encephalitis with long-term effects) – Not Available in California
15. Major Burns (>40% BSA, 3rd Degree)
16. Loss of Limbs
- Some states may limit the definition of terminal illness to conditions that are expected to result in death within 12 months.
- Claims will not be processed until at least thirty days after the qualifying illness has occurred