Life Insurance You Don’t Have to Die to Use

Life insurance is often thought of as something your family receives after you pass away. But some policies may also include living benefits, which can help you while you are still alive.

This can be especially important for adults in their 50s, 60s, and 70s, but younger families may benefit from this protection too. A serious illness, long-term care need, or loss of income can create financial stress at any age.

Living benefits may allow you to access part of your death benefit if you experience a qualifying long-term care event, chronic illness, critical illness, or terminal illness.

For example, a policy with a $150,000 death benefit that allows access to 4% per month for a qualifying long-term care event could provide up to $6,000 per month in benefits.

Critical illness benefits can also be valuable. A heart attack, stroke, invasive cancer, or other serious illness may not always require long-term care, but it can still keep you from working while you recover. Disability coverage, if available, may not replace your full paycheck.

I have seen this firsthand. A client with a $100,000 life insurance policy with living benefits was diagnosed with lung cancer. His employer kept his job open, but his recovery took longer than expected and much of his leave was unpaid. Being able to access part of his benefit helped him focus on recovery without the added stress of falling behind financially.

Life insurance can also help protect a surviving spouse. When one spouse passes away, the household may lose one Social Security check. Many bills stay the same, but income can drop. A life insurance death benefit can help cover that gap and is generally received income-tax free by beneficiaries.

And if you never need the living benefits, your loved ones may still receive the death benefit. Some policies may also offer cash value, surrender value, or return of premium features, depending on the policy.

That is why life insurance with living benefits can be such a valuable planning tool: protection if you need it, and protection for your family if you do not.

Take the Next Step

Whether you are planning for retirement, protecting your spouse, or raising a family, now is a good time to review your options. At Simple Health & Life Insurance Agency, we can help you find coverage that fits your needs, budget, and goals.

Important Note

Benefits vary by policy and are subject to eligibility requirements, limitations, waiting periods, and exclusions. Accessing living benefits may reduce the policy’s death benefit and cash value, if applicable. Cash value, surrender value, and return of premium features are not available on all policies. Death benefits are generally received income-tax free by beneficiaries; however, individual circumstances may vary.