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 Some life insurance policies have living benefits which can be of great help at a
moment of need while you are still alive.
The first and most obvious living benefit is that if you have a life insurance
policy with accessible cash value, that money can be used for
whatever you want.
Another common living benefit that is offered on most life insurance plans as a
rider (an add-on to the policy which usually costs more) is waiver
of premium. This rider usually stipulates that if you become disabled and remain so
for six consecutive months, the premiums (the price of insurance) will be waived while you
continue to be disabled. In other words, while you are disabled and the waiver of premium
benefit is activated, you won't have to pay for the life insurance!
This benefit takes on particular significance in a permanent, cash-value life
insurance policy if it also stipulates that while the premiums are waived, money is also
being added to the cash value -- just as if you were paying into your policy!
There is an extra cost to add the waiver of premium to a life insurance policy.
Ask PGA Financial if you might qualify.
Outside of accessible cash value and waiver of premium, there are other benefits
that are starting to become popular and are being offered. Some come included with your
policy, some are available as riders.
These benefits deal with tragic things that could happen to your health and are
not fun to think about, and much worse to actually experience. But, in these situations,
what always makes matters worse? It is time off work, income loss, and maybe huge medical
bills and the money problems that follow! Why not consider that for
the same cost, or often not much more, you may obtain a life insurance policy that not
only could financially save your family if you die, but could save you if you become
critically ill!
The most common of these living benefits is the terminal
illness benefit rider (it also goes by other names -- accelerated benefit, etc.).
This rider usually says something to the effect that if it is certifiable that you have
been declared terminally ill and are estimated to have only twelve months (some life
insurance policies say six months) or less to live, then the life insurance company will
advance a portion of the death benefit to you. The amount available to be advanced varies
from company to company, but is usually between 25% to 100%, minus certain charges.
Whatever amount of death benefit does get advanced is subtracted from the ultimate death
benefit. If you manage to beat the odds and live, you don't owe the money back!
This benefit is now automatically included for no additional charge in many life
insurance policies offered in today's market. If you have purchased life insurance lately,
check your policy -- you may already have a terminal illness benefit!
There are some treatments for serious illnesses that have proven to work in the
right situation, yet haven't been approved by health plans -- imagine the difference it
could make if the life insurance policy provided the funds to pay
for the treatment!
Not so widespread, but now available with a few life
insurance companies, are plans with riders or included benefits that will also pay out a
certain percentage of the policy if you suffer an illness such as stroke, heart attack,
kidney failure, paraplegia, major organ transplant; or are facing coronary artery surgery,
heart bypass, or angioplasty; or are diagnosed as having Alzheimer's; or need long term
care in a nursing home.
Not all of the illnesses listed above would be
covered by any one life insurance policy from any one company; it would be necessary to
see the material from a specific life insurance company about their specific life
insurance policy. PGA Financial can help you obtain the policy that would cover some of
these kinds of illnesses that you are interested in insuring against.
Life insurance policies with these new living benefits
have already enjoyed popularity in Europe and are expected to gain popularity in the USA
as more and more people become aware of them. They certainly should be seen as a great
financial and health estate planning benefit!
Please fill out the quote form to get more
information.
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