Here's a Benefit No One Knows About!
Have you ever heard of Life Insurance with Living Benefits?
Life insurance with living benefits (also known as Accelerated Death Benefits) provides the option to receive cash while you are alive. Living benefits can provide funds at a time that the insured and his/her family need them most.
Most life insurance policies only pay a benefit to your family after you pass away. A life insurance policy with living benefits still does that but can give you access to cash while you are alive, and when the funds are most needed. People see this as a smart way to have funds they need without having to access a retirement fund, 401(k) or liquidate CDs. You determine how the money is used. You can pay for treatment, replace lost income, provide for in-home care or facility needs, etc.
When are Living Benefits Available?
Living benefits may be available when a person has a terminal, critical, or chronic illness.
"Critical illnesses" include heart attack, stroke, cancer, end-stage renal failure, major organ transplant, ALS, blindness from diabetic retinopathy, and paralysis of two or more limbs.
"Chronic Illness" is defined as being unable to perform two of the six activities of daily living: bathing, continence, dressing, eating, toileting, and transferring; or having a sever cognitive impairment that would require substantial supervision for care and safety.
How much money do I receive from Living Benefits?
There are several factors that determine how much you receive when you access your living benefits. The main factor is your life expectancy, based on age and overall medical condition. The longer you are expected to live, the lower the benefit you will receive. The shorter you are expected to live, the higher the benefit you will receive.
Who are the living benefits paid out to?
The funds paid out under a living benefit claim are paid to you, the policy owner, not the named beneficiary.
If I use all the living benefits, what is left when I die?
The maximum amount you can accelerate is usually 90% of the policy amount. Therefore, you will have a minimum of 10% of your policy amount remaining for your loved ones upon death, and a lower monthly premium.
Talk to a local agent to learn more!
Our local agents can talk to you about the different life insurance options, and how to set up living benefits for yourself and your family. Call or text 801-609-8699 or make an appointment to talk about insurance today!
About Utah Avenue Insurance
Utah Avenue Insurance is your local health insurance experts. Our agents are here to help you with all your health insurance questions. Utah Avenue can help you with marketplace (aka Obamacare) plans, private health insurance and Medicare. If you have questions about how your medical insurance plans work or need help enrolling in a plan, we can help you. As always, our service is free to you.
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