What are living benefits?
If you believe that life insurance is a door which cannot be opened until you die, then living benefits can provide you the key by giving you the ability to access money while you are still alive.
Living benefits will give you access to a portion or all of your insurance death benefit while you are still alive.
Although there are a variety of living benefits that you can get, here is a list of the top 3.
Living Benefit #1: Terminal Illness Insurance
In most states, you’ll be eligible for terminal illness living benefits when you are diagnose by your physician with terminal illness. Your illness is likely to result in your death within 24 months.
Living Benefit #2: Chronic Illness Insurance
In order to receive chronic illness living benefits your physician must have certified, within the last 12 months, that you cannot perform at least 2 activities of daily living (ADLs) yourself for a minimum of 3 months in a row or that you are cognitively impaired for a minimum of 90 days. Activities of daily living include bathing, grooming, eating, moving around and using the restroom.
Keep in mind, Medicare will not pay for this type of care.
Living Benefit #3: Critical Illness or Injury Insurance
When facing a critical illness or injury, then you’ve probably found it difficult to pay expenses and medical bills. Visiting the doctors, staying in hospitals and medications cost much more money than many people think and earning a paycheck can be challenging or yet impossible when you are very ill. When deciding to use you your critical illness living benefits during this time, you can receive up to 100% of your insurance policy death benefit.