Some years ago, the Life insurance industry began to design more sophisticated products that allowed insureds to access some or all of their insurance benefits before they die. At first, this option was only offered through riders to whole or universal Life insurance policies, generally at an extra cost.

A living benefit provides for payment of a portion of your Life insurance (typically 50%) if you are diagnosed with a terminal illness and have a short life expectancy. These insurance proceeds can be extremely helpful during a difficult time, helping to cover mounting medical bills and other unforeseen expenses. The remaining benefit amount continues as Life insurance for the beneficiary’s protection.

When deciding whether to file a claim for a living benefit, it’s important to consider the impact. Do you need the money to cover current expenses or would it be better left to your beneficiaries?  What are the tax implications, if any? Will you tell your heirs in advance so they can plan accordingly? A living benefit can be a valuable lifeline at just the right time.

Explore our Life insurance plans to learn about living benefits and other Life insurance plan features.

SMRU 1864559