Most people think of life insurance as something that is useful only after death. However, this is not always the case. There exists a life insurance option that can be used in the case of dealing with a chronic or terminal illness as well. This option is called Accelerated Death Benefits, or Living Benefits. The money involved in this life insurance policy is paid to the policy owner before death if he or she suffers from a chronic or terminal illness. It can be added to a current insurance policy at no extra cost, and helps patients and family keep on top of medical bills and be prepared for scenarios such as premature death.
There are a various number of health-related circumstances that would qualify a policyholder for Living Benefits. For example, someone with a terminal illness, with a projected death date taking place in or under 24 months, is eligible. Additionally, any chronic illness that has been proven to reduce life expectancy would make a person qualified. It is important to note that such chronic illnesses would include medical conditions such as AIDS or heart disease. Another factor that would qualify someone for Living Benefits is if that person contracts some sort of illness that requires extreme measures to treat, such as an organ transplant. Also in the category of someone who can file for Living Benefits is an individual with a condition that necessitates long-term care, as he or she is no longer able to complete normal daily activities. Finally, Living Benefits are also available for those who live in nursing homes.
An Accelerated Benefits policy is adopted either by being added to your insurance premium, or included in a policy for a small amount of money. If the premium option is selected, your policy will not be cancelled, which is a fear for many who contract serious illnesses. It will not replace your long term benefits, so much as ensure that other life insurance savings will not be depleted by a need to pay for long term care. The money from this policy can be paid monthly or in a lump sum, depending on your insurance provider.
Of course, Accelerated Benefits are more often added on to certain life insurance policy over others. For example, Universal Life Insurance policies are more likely to have Accelerated Benefits added onto them than other insurance policies, as are several other permanent life insurance options. They may also be available through group term and permanent life policies. Accelerated Benefits are monitored very closely by insurance providers and come with qualifying conditions that trigger early payment.
In such uncertain economic times, it is necessary to maintain a certain level of financial control. Life insurance is here to protect against risks, and Accelerated, or Living, Benefits help families and individuals do just that.
For more information, head over to The Next Generation Insurance Agency, LLC.