Living benefits in life insurance provide policyholders with the option to access a portion of their death benefit while still alive, offering financial support during critical times. These benefits can be invaluable when facing serious health challenges or unexpected financial needs.
Living benefits, also known as accelerated death benefits, allow you to receive part of your life insurance policy's death benefit under specific circumstances, such as:
Terminal Illness
If diagnosed with a terminal illness with a limited life expectancy, you can access funds to cover medical expenses or fulfill personal wishes.
Chronic Illness
For conditions that impede daily living activities, living benefits can help manage healthcare costs and necessary lifestyle adjustments.
Critical Illness
In cases of severe health events like heart attacks or strokes, these benefits provide financial relief during recovery.
To utilize living benefits, a policyholder typically submits a claim along with medical documentation to the insurance company. Upon approval, a portion of the death benefit is disbursed, reducing the amount available to beneficiaries upon the policyholder's passing. It's essential to understand the terms and conditions, as some policies include living benefits automatically, while others may require additional riders.
Financial Flexibility
Access funds when needed most, without the burden of loans or additional debt.
Peace of Mind
Focus on recovery or quality time with loved ones, alleviating financial stress.
Comprehensive Coverage
Enhance your life insurance policy to address both end-of-life and critical life situations.
While living benefits offer significant advantages, it's important to note that accessing these funds will reduce the death benefit available to your beneficiaries. Additionally, some policies may charge fees for adding living benefit riders. Consulting with a professional advisor can help determine if a policy with living benefits aligns with your overall planning goals.
At Nala Guard Financial, we are committed to helping you understand the various aspects of life insurance to make informed decisions that best protect you and your loved ones.