Achieve Peace Of Mind With Living Benefits Life Insurance in 2024
Written by Daniel Ray, Life Insurance Expert |
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Fact Checked by
Lisamarie Monaco |
Editorial Disclosure
If you are in search of Living Benefits Life Insurance, you’ve come to the right place!
We all know that life insurance is a necessary evil. It’s not something we like to think about, but it does provide peace of mind and security for our family in the event of an untimely passing. But what if there was a way to get this coverage with better rates – without having to do anything?
Many people are unaware that they can get discounts on their life insurance simply by living healthy lifestyles. The key is knowing your numbers: blood pressure, cholesterol, weight-to-height ratio, and other factors may be enough to qualify you for discounts worth hundreds or thousands of dollars per year!
So don’t just sit back and let things happen… take control before it’s too late!
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Life Insurance With Living Benefits
What is living benefits insurance?
We will be discussing Living Benefits and how it can save you and your family, but first…
Above all, one of the most important ways you can financially protect your family is by purchasing a life insurance policy. As you know, people die every day at all ages and for many different reasons.
In fact, death is inevitable!!! It’s going to happen, one day! But what about other benefits of life insurance? Buying term insurance with living benefits could be the best decision you make for your family. Furthermore, life insurance plans with living benefits can protect you from a chronic, critical or terminal illness.
This is sometimes called “living life insurance” or “living benefits insurance” or “living insurance”. In fact, this could supplement for lost income for those that missed out on work recuperating from the critical illness.
What is Living Benefits Insurance
We will go into the pros and cons of living benefits life insurance to dig deep about this living benefit option.
Life insurance agents that know how living benefits riders work should always give a consumer the option especially if there is a family history of health impairments below the age of 65.
There are many good products that offer Living Benefits, so it’s important that your agent knows the best ones available with price and options.
In fact, most of the time it is a term life insurance with a living benefits rider. The living benefit option also comes with whole life policies and universal life policies.
The pros certainly outweigh the cons. The living benefits option is just a huge added benefit to the insured and the family. So it is important that your independent agent offers you life insurance companies with living benefits.
If the insured is disabled and is unable to perform 2 out of the 6 daily living requirements then you or the beneficiary gets the bulk of the benefit without dying. In most cases, the spouse is the beneficiary with also power of attorney.
Powers of attorney are the legal document that gives a family member, or next of kin the right to make decisions on behalf of another when they are unable to make those decisions on their own.
Also, drafting a living trust in most cases would make it easier if you have kids that are minors. Living trusts set down the rules on how the monies are being dispersed.
Always consult with your tax professional and attorney about how to structure trust and the advantages and disadvantages of a living will.
What Do You Do If You Don’t Die?
Living Benefits Insurance
That’s a valid question.
You’ve begun your life journey with a job, a family, and a house loan, and everything is going well. You might have even bought a life insurance policy for a million dollars, so your family will be okay with money if something happens.
You have taken care of everything, or have you?
In fact, what happens if you have a stroke? A heart attack? Or Diagnosed with a MAJOR illness like cancer, ALS or AIDS?
What good does that life insurance policy do you if you don’t die? Because of any of these circumstances, you may not be able to work and provide for your family.
For instance, your income may cease!! What does your family do? Who will pay the bills?? How are you going to pay your premiums? How will you pay your health insurance or medical bills if need be?
This is where living benefit rider life insurance comes in.
We will talk about the advantages of life insurance more with the living benefits rider. With these riders built into the policy, you would think it would be much more expensive.
Not the case, it’s surprisingly cheap affordable life insurance.
What Is Term Life Insurance With Living Benefits
Term Life with living benefits is life insurance that has accelerated benefit riders built into the policy.
Furthermore, the living benefit rider is designed to provide the insured access to the death benefit, in some cases a discounted portion.
If the insured’s diagnosis is with a life-changing illness, this could ultimately cause a huge financial burden on all involved.
What are Living Benefits of Whole Life Insurance
Living benefits in a whole life policy is really no different than term insurance with living benefits policy. Although the two policies are completely different, the riders are the same.
Life insurance with living benefits is the key to truly protecting your family. It is important to know that loved ones are taken care of if a major illness takes place.
What are the living benefits of life insurance?
There Are Three Accelerated Benefit Riders That Makeup The Living Benefits rider:
- Terminal Illness Rider – A life expectancy between 12 to 24 months. Some carriers vary and depending on state limitations.
- Chronic Illness Rider – Insured unable to perform two out of six activities of daily living.
- Critical Illness Rider – A diagnosis of the insured with between 10-18 critical illnesses, depending on the carrier
These living benefits riders have no additional premium or cost.
To clarify, almost all carriers will offer the accelerated benefit amount that’s less. Usually, a percentage of the actual death benefit. The diagnosis type, stage, and treatment will influence the amount paid.
While the life insurance coverage is tax-free, they will deduct the used portion from the policy’s face amount.
Life Insurance You Can Use While Alive
Another name for these types of built-in riders is accelerated death benefit rider. These help significantly during serious medical conditions where medical bills are skyrocketing.
However, in the life insurance contract, the beneficiary will receive less than the death benefit used when exercising the critical, chronic and terminal illness riders.
Some variable annuities come with these riders as well as index and fixed annuities.
Best Life Insurance with Living Benefits
To point out, There are only a few life insurance companies that we deal with that have life insurance with living benefits. These are the best of the best.
In like manner, they are very similar, with a few minor differences. We will label our top life insurance carriers that make our list for living benefits life insurance.
These carriers offer the best life insurance with living benefits quotes.
American National Living Benefits makes the top of our list!! They have fantastic Accelerated riders built into their signature term product. They have the best living benefits, PERIOD! Here are some of the benefits ANICO will offer in there signature term LB.
- Maximum Benefit, up to 100% of death benefit up to 1 million, 2 million from age 0-65.
- Terminal Illness, the Life expectancy of 24 months or less.
- Chronic Illness, such as Severe cognitive impairment or inability to perform 2 of 6 daily living activities.
- Critical Illness/Injury, including Heart attack, stroke, Invasive cancer, final stage renal failure, Organ transplant, ALS, Blindness, Paralysis, Arterial Aneurysm, AIDS, a Severe disease of any organ, Major burns, Loss of limbs. The waiting period is 30 days, and the payout is a lump sum.
Given these points, they also will underwrite with living benefits up to table D/4. Most life insurance companies with living benefits don’t offer that!
In fact, this will also include a decrease in the premiums paid for the difference of the living benefits that were paid out. American National also has accelerated underwriting up to 250,000, age 65 with there standard rate class.
American National does have a fantastic portfolio of products like IUL Index Universal Life. These products are ubiquitous vehicles for using life insurance as an investment.
This is our Best Term Life with Living Benefits CARRIER
No Exam Life Insurance With Living Benefits
Ameritas has a great product called FLX Living Benefits. It offers a no exam up to $300,000 for those that are not patient. Also, Ameritas is also a part of a mutual organization.
This means that they are owned by the policyholders. Ameritas also has much of the benefits of ANICO. However, they only pay up to 90% of the death benefit to living benefits and only pays the terminal illness rider with 12 months left to live.
Phoenix life offers simplified issue term life and Phoenix remembrance final expense whole life with living benefits.
In fact, not only does Phoenix life offer term life insurance with living benefits that includes critical illness rider, chronic illness rider, and terminal illness rider, but also an unemployment rider.
Our diabetic clients love living benefits and therefore we always offer Phoenix due to the renal failure feature.
We like to call it the living needs rider.
Furthermore, this is one of our best senior products we have for those that want the extra coverage and the convenience of a no exam.
Phoenix also has a great final expense product with their Phoenix Remembrance Life.
Phoenix Remembrance Life is uniquely designed to provide:
- A simple, quick application process
- Coverage for a funeral or other final expenses
- Financial flexibility in case of a serious illness or accidental death
Also, Advance Up to 95% For Serious Illness – Two accelerated benefit riders will allow you to take a portion of your death benefit early in the event you become seriously ill.
In fact, if you are diagnosed with a heart attack, stroke, cancer, renal failure, major organ transplant, or ALS, the Critical Illness rider allows you to accelerate a portion of your death benefit.
Safe Harbor Living Benefits
Phoenix Safe Harbor Term Life also includes four living benefit riders, offering additional flexibility and coverage for some unexpected events.
Furthermore, these riders are available at no additional premium and offer protection for the following.
- Critical Illness
- Chronic Illness
- Terminal Illness
- Unemployment
Unemployment Waiver of premium for the most part, if you become unemployed for at least four weeks and are receiving state or federal unemployment benefits, this benefit waives six months of premium.
Foresters is a fraternal company and a leading life insurance product in the senior community for its low-cost quality life insurance.
For instance, Foresters your term is non-med and fully underwritten depending on health history. In fact, it also has Chronic, Critical and Terminal benefits at no extra cost.
Living Benefits will give clients not only flexibility but most importantly, peace of mind.
When it comes to living benefits life insurance, the 30-year term gives the consumer three decades of balanced coverage and peace of mind. They have two whole life products and the term life insurance that we favor.
Foresters WL VS. Term
Foresters Advantage Plus Whole Life Insurance is a participating whole life product which provides lifetime death benefit protection, guaranteed cash values, and lifetime guaranteed premiums.
In fact, it is designed and priced based on the 2001 Commissioners Standard Ordinary (CSO) mortality tables.
In addition to offering lifetime protection, Foresters Advantage Plus also offers a variety of features and riders that address a broad range of personal protection needs.
Face Amount of Bands
Non-Medical
- Issue Age 0 – 15: $25,000 to $150,000
- Age 16 – 55: $25,000 to $400,000
- Age 56 – 75: $25,000 to $150,000
Foresters PlanRight Whole Life Insurance is a permanent, whole life product which provides a guaranteed, level premium and makes use of a simplified application and underwriting process.
PlanRight is designed to help cover final expenses such as the costs associated with funeral and burial expenses, probate fees, or other financial obligations that an Applicant’s family may face in the event of death.
Foresters Your Term Level Term Life Insurance (Your Term) is a fixed period, level term life insurance product with guaranteed premium and death benefit.
Maximum Face Amount
Non-Medical
- 18 to 55: $400,000
- 56 to 80: $150,000
Mutual Of Omaha Term Life Express With Living Benefits
Offers up to 80% of the death benefit to $1 million. The life expectancy of 12 months or less will be allocated for terminal illness.
Its chronicle illness rider can be available if the insured is unable to perform 2 of the 6 activities of living. The critical illness rider will be paid in a lump sum.
In fact, they offer no medical underwriting up to $400,000 to age 65.
Non-Medical underwriting is available up to a standard table D(4). Anything above that will be a decline.
If a client had a 20-year term policy with living benefits, any benefits paid due to a critical/chronic riders would be deducted off the death benefit.
Furthermore, the premium will be decreased with a decreasing face amount.
Living Benefits and Business Insurance
Does it make sense?
Above all, when you own a business, it is imperative to protect the business. If you have multiple partners that own a business having a buy/sell agreement will protect the remaining partners in the event of your death. In fact, the death benefit will go to the family of the partner.
As a business owner, the biggest commodity in your business is your employees. With that said, amongst your employees, you have the superstar, the MVP, the employee that holds the bricks together.
Above all, this employee usually has a positive impact on your bottom line. In the event of his/her passing, it could have a negative impact on your company. In some cases they are replaceable.
A key man life insurance policy will weather the storm of the absence. This will supply the company with missed income that an employee brought in and the time to replace them.
Although living benefits might make sense to have for employees overall, business life insurance it is uncommon.
Living Benefits Price Comparison – Video
Here is a price comparison between term life with living benefits compared to the best rates in the industry. For example, this is for a healthy male, age 45, $1 million 20 year term.
Living Benefits Life Insurance Pros and Cons
When shopping for which types of life insurance is best for you, it is crucial to take everything into consideration when choosing an insurance plan.
Above all, life insurance with living benefits is usually covered for a period of time whether it is term life or a GUL. In my opinion, if you have a history of diabetes or any other health impairment it is key to have this feature in your policy.
In fact, being able to combine the pricing of a life insurance policy with long-term care really puts your family in a better position. This type of policy covers all the angles. Again, in most cases this policy does not have cash value and the death benefit is guaranteed.
If you are older, say over 75 years of age, this policy will not be available to you. For instance, as a senior, activities of daily living can be hard when you are older. This would be the only con I can think of. This would be a great product to offer the elderly.
If you want to understand living benefits life insurance pros and cons please consult us at in**@pi***********.com or call 855-380-3300.
Save 50% On Your Life Insurance By Layering Policies
FAQs
What is a living benefits option?
A living benefits option in some carriers are a critical, chronic and terminal illness rider that you can add on a term, UL or Whole life policy.
Does Term Life Insurance have living benefits?
Yes, the carriers we do business with have this already built into the policy.
What is an accelerated benefit in a life policy?
A accelerated benefit is a terminal illness rider. If a medical professional deams you terminally ill, the accelerated death benefit can allow you to access your life insurance without dying.
Do you have to pay taxes on accelerated death benefits?
In most cases no as this is part of your death benefit. I would always run this by your CPA as some states my have different tax laws.
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Conclusion
As the great philosopher, P.J. O’Rourke said, “The only thing you can be sure of is death and taxes.” If you’re looking for peace of mind that your family will always have some financial support in case something happens to you, Living Benefits Life Insurance may be a good option. Get an instant quote to see how much coverage would cost so that if our time does come, we know our loved ones are taken care of – just like they were when we were alive!
