Term Life Insurance is one of the most cost-effective tools to protect your loved ones, your business, or your estate. It’s affordable, easy to manage, and simple to purchase. When it comes to financial protection, few options offer the same value.
But traditionally, term life insurance only helps your family after you’re gone. While that’s the core purpose, it often feels like a one-sided benefit.
What if your life insurance could support you while you’re still living?
Living Benefits, also known as Accelerated Death Benefits, allow you to access a portion of your policy’s death benefit while you’re still alive. These benefits are typically available if you’re diagnosed with a critical, chronic, or terminal illness and need financial help for care or treatment.
You can use the funds to cover medical bills, caregiving, or everyday living expenses. The remaining benefit is paid to your beneficiaries after your death.
Here are a few important things to understand about Living Benefits:
State Availability
Not all states allow term life policies to include accelerated death benefits. Availability depends on state regulations and the specific insurance provider.
Benefit Limits
Policies may restrict the amount or frequency of funds you can access. These limits vary and should be reviewed before selecting a policy.
Fees and Interest
Living Benefits are considered an advance on your policy’s death benefit. Insurers may apply an interest rate and administrative fees, which reduce the final payout to your beneficiaries.
Understanding how Living Benefits work before you purchase a policy is essential. You don’t want to wait until a serious illness occurs to find out how your coverage applies.
Choosing a term life insurance policy with Living Benefits can add an extra layer of protection for you and your family. Reach out to us today to discuss your needs and find out if this feature is the right fit for your plan.
This Medicare information section is here to educate you about your insurance options and provide you with the resources you need to help you select the right plan for your unique needs.
If there’s anything you need or if you have any questions, please feel free to contact us. We are here to help.