Life insurance is commonly known as an insurance policy that will provide a death benefit to beneficiaries once the insured passes away. Although this is correct, and it is CRITICAL to a financial portfolio, there are other benefits to life insurance while the insured is still alive!
Were you aware there are living benefits of life insurance? Most life insurance companies provide optional riders (i.e. extras or bonus items) that can attach to a life insurance policy which will allow an insured to access a portion of their death benefit while they are still alive. Here are a few:
- Chronic Illness Rider: can be used to access a portion of the death benefit if considered to be chronically ill by a licensed health care professional within the last 12 months. This rider can be in place of a long-term care policy. Chronically ill means a person is:
- Expected to be permanently unable to perform, for at least 90 consecutive dates, at least 2 activities of daily living* or
- Requiring substantial supervision by another person, to protect oneself from threats to health and safety due to cognitive impairment
- Critical Illness Rider: can be used to access a portion of the death benefit if considered to be critically ill by a licensed health care professional within the last 12 months. Critically ill means a person has incurred a Specified Medical Condition, some conditions would be:
- Heart attack or Stroke
- Organ transplant
- Kidney failure
- Terminal Illness Rider: can be used to access a portion of the death benefit if considered to be terminally ill by a licensed health care professional and have a life expectancy of 24 months or less.
Does your current life insurance policy have any of these living benefits? Call Journey today to speak to one of our financial advisors to ensure you are properly protected!