You Don't Have To Die To Use Your Policy When It Has Living Benefits
Life insurance used to be simple: You paid premiums for years, and the policy only paid out if you died. But times have changed, and modern life insurance offers something far more powerful. Living Benefits, also known as Accelerated Benefit Riders.
These riders allow you to tap into your death benefit while you’re still alive, helping families cover expenses during times of crisis. Whether it’s a stroke, cancer diagnosis, or life-threatening accident, these policies ensure financial security when it’s needed most.
But what happens when you don’t have these benefits? And what happens when you do?
A Business Owner’s Story: When Traditional Life Insurance Wasn’t Enough
A successful business owner, one of our real estate clients, had an old-school life insurance policy that would only pay out upon death. This was the industry standard at the time, but today’s policies offer so much more.
We introduced him to the new life insurance policies, where he wouldn’t need to die to benefit from his coverage. These modern policies include Living Benefits, Accelerated Benefit Riders, that allow access to the death benefit in cases of:
- Critical Illness: Heart attack, cancer, major organ failure, and the works
- Chronic Illness: Unable to perform 2 out of 6 daily living activities
- Critical Injury: Severe burns, paralysis, traumatic brain injury and coma
- Terminal Illness: Less than 12-24 months to live
Despite the advantages, he was hesitant to switch. The underwriting process, his age, and his current health made him reluctant to change policies. He had a $1M “die-only” policy, and he felt secure with it. We didn’t press further. It was his choice.
But just one year later, tragedy struck, he suffered a massive stroke, leaving him in a permanent vegetative state. His thriving business fell into chaos, forcing his sons to take over without a proper succession plan or financial cushion to bear the transition.
If he had living benefits, he could have received $20K per month tax-free to ease the financial strain on his family.
Instead, his family struggled without financial support, draining savings to keep things afloat.
This isn’t just one story. Thousands of Americans face similar crises, cashing out 401(k)s, losing their homes, struggling to pay medical bills.
A Father’s Story: When Living Benefits Saved a Life
Not all stories have tragic endings. Several years ago, one of our agents held a seminar on Indexed Universal Life insurance, highlighting how these policies provide tax-advantaged growth and can be used for college funding, a potential alternative to a traditional 529 plan.
A father was intrigued. He purchased policies for himself, his wife, and his 6-year-old daughter, thinking of it purely as a savings vehicle, never expecting to use the living benefits. Then, the unimaginable happened.
His daughter fainted at school, was rushed to the ER, and diagnosed with a massive brain tumor. Doctors gave her a terrifying prognosis, with a very low chance of survival. With the Living Benefits rider, the parents filed a claim and accessed $600K from the policy.
- They both quit their jobs to care for their daughter full-time.
- They took her on a dream trip to Disneyland, so she could enjoy life while she could.
- They sought specialized medical treatment, one that was extremely expensive, but ultimately saved her life.
- Their daughter is alive today.
Without Living Benefits, what would have happened?
Would they have had to keep working, unable to spend precious time with their child?
- Would they have drained their savings and still been unable to afford treatment?
- Would they be financially devastated today?
This is the power of Living Benefits and it offers true financial security when families need it most. We are not invincible, isn’t this what we teach our children?
- Don’t text and drive.
- Wear a seat belt when you drive
But as adults, we forget that we are just as vulnerable. Car accident happen no matter how careful we are. Heart attacks, strokes, and cancer can strike at any age regardless of how well you eat or how often you workout. You don’t have to be old or unhealthy for life to take an unexpected turn. That’s why having Living Benefits matters because it’s protection for the unknown.
Do You Have the Right Life Insurance?
Life insurance isn’t just about leaving money behind when you die. It’s about protecting yourself and your loved ones while you’re still alive.
- If something happens, will you have financial security?
- Would you be able to quit your job and take care of your family?
- Would you have the resources to pay for specialized treatment or maintain your lifestyle?
Living Benefits could mean the difference between financial devastation and financial security. Don’t wait until it’s too late. Book a consultation today to ensure your policy works for YOU not just for your beneficiaries after you’re gone