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Living Benefits

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What are Living Benefits?

 

Living benefits, also known as accelerated death benefits, are features that some term life insurance policies offer to policyholders while they are still alive. These benefits allow the policyholder to receive a portion of the death benefit if they experience a qualifying event or circumstance, typically related to a severe illness or terminal condition. While the specifics may vary among insurance companies and policies, here are some common types of living benefits in term life insurance:

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Critical Illness Benefit: this benefit provides a payout if the policyholder is diagnosed with a specified critical illness such as cancer, heart attack, stroke, or organ transplant. The funds can be used to cover medical expenses, seek specialized treatment, or manage everyday living costs during the illness.

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Chronic Illness Benefit: this benefit is triggered when the policyholder is unable to perform certain activities of daily living (ADLs) due to a chronic illness or disability. The benefit can be used to cover long-term care costs, home modifications, or other necessary expenses.

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Terminal Illness Benefit: if the policyholder is diagnosed with a terminal illness and has a life expectancy typically ranging from 12 to 24 months, this benefit allows for an early payout of a portion of the death benefit. It can help cover medical expenses, provide financial support, or fulfill end-of-life wishes.

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It's important to note that living benefits are not available in all term life insurance policies, and the specific terms, conditions, and eligibility criteria vary. The availability of these benefits and the coverage amount are typically determined at the time of policy purchase.

Who should get Life Insurance with Living Benefits

 

Life insurance with living benefits is a type of policy that provides coverage not only in the event of death but also for certain critical illnesses or other qualifying events during the insured person's lifetime. This type of policy can provide financial support and protection in case of unexpected medical expenses or loss of income due to illness. While the specific eligibility requirements and coverage options may vary depending on the insurance provider and policy, here are some individuals who might consider getting life insurance with living benefits:

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Individuals with Dependents: if you have dependents who rely on your income, life insurance with living benefits can offer financial protection in case you suffer from a critical illness and are unable to work. It provides an extra layer of security beyond traditional life insurance.

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Self-Employed Individuals: self-employed individuals often lack the safety net of employee benefits, such as sick leave or disability insurance. Life insurance with living benefits can provide income replacement and cover medical expenses if a critical illness prevents you from working.

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Individuals with a family history of Critical Illnesses: if you have a family history of critical illnesses like cancer, heart disease, or stroke, you might consider life insurance with living benefits. It can provide financial support in case you are diagnosed with a covered condition in the future.

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Those without substantial savings or emergency funds: if you don't have significant savings or an emergency fund to rely on in case of unexpected medical expenses, life insurance with living benefits can offer a financial safety net.

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Individuals seeking additional health coverage: some life insurance policies with living benefits offer additional health-related benefits, such as access to discounted medical services, second opinions, or wellness programs. If you value these additional benefits, this type of policy may be worth considering.

Why is acquiring Life Insurance with Living Benefits Important?

 

Getting life insurance with living benefits can provide you with added financial security and flexibility during your lifetime. Here are a few reasons why it may be beneficial to consider life insurance with living benefits:

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Protection against Critical Illnesses: Life insurance policies with living benefits often include provisions that allow you to receive a portion of the death benefit if you are diagnosed with a critical illness such as cancer, heart attack, stroke, or kidney failure. This can help cover medical expenses, treatment costs, or any other financial obligations you may have while you're still alive.

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Supplemental Income during Disability: Some life insurance policies offer living benefits that provide a source of income if you become disabled and are unable to work. This can help replace lost income and cover your daily living expenses, ensuring financial stability for you and your family during challenging times.

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Long-Term Care Coverage: Certain life insurance policies with living benefits include provisions for long-term care coverage. These policies can help cover the costs of nursing home care, assisted living facilities, or in-home care if you require assistance with daily activities due to aging, illness, or injury.

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Flexibility and Customization: Life insurance with living benefits often offers flexibility in terms of how you can use the benefits. Depending on the policy, you may be able to use the living benefits for medical expenses, debt repayment, home modifications for disability, or even taking a dream vacation. The choice is yours, allowing you to adapt the benefits to your specific needs and priorities.

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Peace of mind for loved ones: While the primary purpose of life insurance is to provide financial protection for your loved ones after your death, life insurance with living benefits offers an additional layer of support during your lifetime. It can ease the burden on your family by helping to cover medical costs and other financial obligations, giving you peace of mind knowing that you have a safety net in place.

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DO NOT SHARE WITH THE PUBLIC!

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Paramount Leadership Development is an organization that is comprised of individuals associated with World Financial Group Insurance Agency, LLC and World Financial Group, Inc., but it is not an affiliated company of World Financial Group, Inc., WFGIA, (In California dba World Financial Insurance Agency, LLC.), World Financial Group Insurance Agency of Hawaii, Inc., World Financial Group Insurance Agency of Massachusetts, Inc. nor WFG Insurance Agency of Puerto Rico, Inc. (collectively referred to as “WFG”).

These agents offer insurance products through World Financial Group Insurance Agency LLC., World Financial Group Insurance Agency of Hawaii, Inc., World Financial Group Insurance Agency of Massachusetts, Inc., (In California dba World Financial Insurance

 

Agency, LLC) and/or WFG Insurance Agency of Puerto Rico, Inc. – collectively WFGIA.

WFGIA Headquarters: 6400 C Street SW, Cedar Rapids IA 52499. Phone: 770.453.9300.

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Tax and Legal Disclosure Neither World Financial Group nor its agents may provide tax or legal advice. Anyone to whom this material is promoted, marketed, or recommended should consult with and rely on their own independent tax and legal professional regarding their particular situation and the concepts presented herein.

 

SUCCESS / RESULTS FOOTNOTE:
Many people have experience various levels of success with World Financial Group. However, each individual’s experiences may vary. This statement is not intended to nor does it represent that any individual results are representative of what all participants achieve when following the World Financial Group system.
 

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