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“Living Benefits” Life Insurance…It could be a LIFE SAVER!.

At Healthier Money, we provide solutions that reduce financial stress. Having living benefits life insurance protection is insurance that you don’t have to die to use!! Imagine, suffering a critical or chronic illness but having money that can be used to pay your bills, keep food on the table and a roof over your families’ head, so you can concentrate on one thing….GETTING BETTER!

Most people think of life insurance only for death protection, but this policy also pivots to cover cancer, a heart attack or a stroke and even monies to pay for long term care or assisted living in your home!

Medical costs are one of the top reasons for bankruptcies, foreclosures and financial hardship!! 1 out 2 households filed for bankruptcy because of medical problems according to  a Health Affairs study!

I have heard many times, but the odds of this happening to me are so remote, it’s stuff that affects my parents! However, most of us don’t realize that the odds of this happening to you are much greater than you think. Even more disruptive, is that families often get drawn in to the responsibility of having to help financially, provide care or even make financial decisions for their loved ones, so the chances of this effecting you go up exponentially!

According to the American Society, 1 out 2 adults men and 1 out 3 women will develop cancer during their lifetime!

A stroke occurs every 40 seconds in the U.S…American Heart Association 2015

70% of people over age 65 will need long term care services…US Dept of health & Human Resources 2017

Strokes are the leading costs of long term disability needs..SAEBO 2017

70% of people over age 65 will need long term care services…US Dept of health & Human Resources 2017

Medicare doesn’t pay for services from ongoing chronic care.. Genworth 2017

88% of nursing home care falls on you or your family… Genworth 2017 

New financial toxicity is cost of treating cancer, and the fact that many people can’t afford the treatments to get better,” Duke Cancer Institute 2017

With a living benefits life insurance policy, it still has death benefit protection but includes optional Accelerated Benefits Rider (ABR’s) that protect while you are alive for qualifying critical illness or injury, chronic illness and terminal illness. 

The insurance company allows you to accelerate a portion of the death benefit to help avoid financial devastation from health events. The amount that you can get depends on the amount of your coverage, since it is based on a discounted portion of your death benefit. Also, the amount that you receive depends on the severity of your illness, but there are 4 levels:

  • Minor
  • Moderate
  • Severe
  • Life threatening

Remember that life insurance is a contract between you and the insurance company to pay a sum of money upon the death of the policy owner, or illness in this case. It should be  predicated on a need to protect someone, something, loved ones, replace lost income, a business interest and your budget. It also includes underwriting , such as age, underwriting, smoking, medications, medial history, gender, etc. to qualify. There is no guarantee that applicants will be approved for coverage. None of this information is intended to be tax or legal advice. Policies must be in good standing for coverage and benefits to be available. Failure to pay premiums will generally lapse the policy. The issuing companies are responsible for paying claims and benefits.  

Why doesn’t everyone have a life insurance a policy with living benefits?  

The simple answer is “that most people haven’t heard about it!” The second biggest reason is “that most people just don’t understand it so they shy away!” You need to at least consider this option as it’s available with term or permanent insurance and can be a powerful way to give you tremendous coverage against life’s unexpected events!!

Pat Moran has over 35 years of financial services experience and is a managing partner at Healthier Money. He is independent and specializes in financial education, reducing risks and tax favored strategies. He can be reached at (602) 571-1035 or www. 

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