Do You Have Living Benefits?

Hm… well… only 1 in 10 people who have life insurance have Living Benefits. So… probably not. But no fear! I’m here to explain what Living Benefits are, why they’re critical to your financial health, and how to figure out if you have them already 👍

What are Living Benefits? Let’s start with a relevant fact: 80% of today’s Americans will live through a major medical event (heart attack, stroke, cancer), and this can create a financial catastrophe. Living Benefits provides you with a flexible, instant cash reserve that will pay your bills while you recover from your medical event, helping you avoid financial distress while you’re dealing with health issues 💵

Living Benefits is a critical part of your financial picture that can help you avoid financial disaster in the wake of an unexpected medical event- and, let’s be real, most of them are unexpected 😲 Living Benefits are also less expensive than you think- most people can get started with $50/month or less 😁🤯

But… maybe I already have Living Benefits, you say? Perhaps you do! Here’s 5 things to look for in your life insurance policy information (Note that your policy may call these “Accelerated Benefits” or “Living Benefits”):

• Does your policy have a maximum dollar payout? If so, is it enough? 💰
  Long term care costs run to ~$138,000 per person (average); the AARP reports that cancer costs a person ~$20,000, out of pocket, *per year* of treatment. I don’t know about you, but I don’t have that kind of money- that’s what Living Benefits is for

• Does your policy have a maximum percentage payout? ❗️
  This means that if your death benefit is $500,000, and your maximum payout is 50%, then you can only access $250,000- tops! A 100% payout is preferred

• What type of payment is it? 💲
  A cash payment gives you a lump sum- you don’t need to show anyone how you intend to use your benefit payment. Some companies will only reimburse you, or require you to show what care you are receiving

• How many types of major medical events will your policy cover? 🚑
  Many companies only cover Living Benefits in the case of terminal illness. A great company will provide Living Benefits for terminal illness; critical illness (stroke, heart attack, non-terminal cancer); critical injury (burns, auto accident); AND chronic illness.

  • What does this kind of great coverage mean? It means that your ONE Living Benefits policy can cover your life insurance; your long-term care insurance; AND your disability insurance 🤯

• Is your policy over five years old? 📅
  You likely do not have full Living Benefits; you may have limited coverage if you are diagnosed with a terminal illness.

Do your answers to these questions make you feel good about your existing safety net? If the answer is no, please know that there are wonderful options out there that WILL help you feel GREAT about your safety net 😁

Now That’s Smart Money 🧐