The Power of Living Benefits Life Insurance Rider
Living Benefits Life Insurance Rider
There are people who values the importance of life insurance. A lot of insurance believers know that Life insurance offers peace of mind to provide protection to their loved ones, especially when premature death occurs. Premature death may be the only holding factor why a person should own a life insurance to protect those they will leave behind.
For over 100 years there are many insurance companies that have offered the needed protection. As the innovation, changes take place in the fast-changing environment the insurance industry has also merged into embracing a more dedicated feature to protect the interest of the insured.
Living Benefits has been around more than a decade now, but it is still unknown to many. The idea of providing benefit to the insured has a difficult connection. In most cases, a head of the family will only be concerned of the loved ones that they will leave behind.
An insured has a minimal thought to take into consideration what is it an insurance can offer them.
It is known that some plans carry cash value growth accumulating insurance that can be access when properly funded, some offers return of premium. However, for the majority a living benefit is still a new concept that is yet to be tested.
But! What is an insurance with living benefits?
I have met with some insurance consultants that are not aware that this asset protection is being offered. How powerful, how truthful it can be? Is it another area of talk to and attract a client or is it really an important area of financial planning?
Too broad, too complicated as others view it. Some say it is too good to be true? How can an insurance allow you to accelerate a lump sum amount against a death benefit while you are still living? Too hard to comprehend.
You heard it right, the living benefit is an insurance product that allows you to accelerate a lump sum money from your death benefit when you suffer critical, chronic or terminal illness. In the past, terminal illness is an auto feature to most insurance companies depending on the severity, you are allowed to accelerate your insurance when diagnosed with terminal illness.
The medical technology has improved at its highest thus far, there are many illnesses that can be cured because of advance technology, science. Truly, it has been a gift as time progresses that our society is provided a tool on improving medical treatment.
As medical technology advances, there are variable factors that contributes to the cost of improving technology these are raw materials, layers of testing, labor cost, and all other experimental cost.
Does it come free? Perhaps, we can agree that it is not free, neither it is cheap!
There is a corresponding cost to every upgrade, and when that medical research has passed the many layers of quality control and scientific studies and has been proven to help patients. The consumer embraces the high price medication and or treatment.
What then a consumer can do?
It all depends on your perspective. Are you the person who would consider broad financial planning? A broad financial planning is beyond savings. There is multiple estate planning involved in a true financial planning.
One of the basic financial planning foundations is through insurance may it be the old insurance or new type of insurance that has living benefits which offers you a more cushioned planning for yourself and for your loved one.
An insurance with living benefits provides you an equivalency of protection in terms of money acceleration, in terms of asset protection.
Does $100.00 or $500.00 monthly savings to your regular bank offers you an instant coverage of an amount hundred thousand or more, when an expected qualified medical situation takes place in your life? Unheard of! However, when you become more educated on the principle of living benefits it then gives you an understanding how important it is, how powerful a living benefits can be.
Your hard-earned money is precious, the best planning you could do is an asset protection. Why having a health insurance is important to most? When, medical needs arise we could be covered is perhaps the most common reason why an individual keeps health insurance. Perhaps, because it is offered by the employer or I am scared of medical cost so might as well have health insurance to cover myself. Regardless, having some sort of insurance gives you a sense of asset protection. The health insurance will bear the majority of cost.
When you become seriously sick will you still be able to clock in, report and still earn? Maybe yes, when vacation hours, medical leave benefits are still intact, and when those are out, we go find a higher tier of coverage through state provided benefits and it varies.
Some state offers you disability income may it be permanent or temporary. Some places can offer you unemployment. All these are generous government protection and we should be grateful for this. However, how long can it be available? How difficult can you tap in to these benefits? How do you qualify to these benefits?
Let us assume that you have qualified, and received benefits. Is there a limit, does benefit align with the cost of living, does it match the salary?
Truthfully! Those benefits are not enough to sustain a monthly operation.
Government programs were created to help, but it does not guarantee a comfortable living.
The cost of living is getting higher as years go by, and it is getting harder to keep up with daily basic expenses much more unexpected illnesses. Unexpected illnesses will put a stall on every work that you are doing. The question is, are you prepared? And how prepared are you? Have you really lined up all your line of defense to give you an extended asset protection.
What is an extended asset protection? Does having a retirement plan, saving account is an asset protection? Yes! Those are asset protection but those are your hard-earned money that you ought to preserve for later time, for retirement, not for illnesses.
Having health insurance offers you an access to medical treatment and you deserve it! And no one should be denied of it. Once all hospitalization, doctor, medication, rehabilitation and other related medical expenses takes place who would then be responsible for other living expenses?
When you are in the healing process during or after a critical illness, who would continue to pay the rent, mortgage, credit card day to day operation, cost of care outside hospital. Does your landlord, or mortgage give you an exception and allow you to waive the upcoming rent or mortgage because you suffered illness?
Health insurance pays for doctor, medication services. Please think who would be in charge of paying rent, mortgage, car payment, credit payment? Especially if you are the head of family.
This may not be your situation, but think about it in our society there are families that are living pay check to pay check, it may not be your situation but some of the families cannot even afford to save because their income is just enough for monthly living expenses. If a family member who are part of the household were to get ill and unable to work, will you say it can be a devastating situation?
The power of Living Benefits as part of financial planning is essential to consider when you are concern of a true asset protection, an income replacement.
Having a living benefit as part of your portfolio gives you an added layer of defense line before your hard-earned investment, money can be tap into.
Living Benefits is important it can pay you, protect you, you when a critical, chronic and terminal illness situation that you do not expect takes place.
This is the Power of Living Benefits Life Insurance Rider.
By Reina Dizon On January 24, 2023