Preparing for the possibility of a critical medical illness or condition is probably not high on your list of fun things to do.
But its importance cannot be overstated—two-thirds of people who file for bankruptcy do so because of medical debt.¹
What many don’t know, however, is that life insurance can help you shoulder the high cost of medical care… if you utilize living benefits!
How living benefits work
Almost all life insurance policies come with a death benefit. It’s money that will go to your beneficiaries when you pass away. A living benefit is a feature of some life insurance policies that allows you to access the death benefit while you’re still alive.
So let’s say you have a life insurance policy with a $400,000 death benefit. You suddenly get diagnosed with a serious illness that requires you to take time off work and undergo intensive medical treatment.
That means you’re facing a substantial expense with a decreased income. Your medical crisis has also become a financial crisis!
But what if you could access your death benefit in the present? $400,000 may cover a substantial portion—perhaps even all—of the cost of treatment.
And you don’t have to use your entire benefit. If your medical bills add up to $100,000, you could use $100,000 from your life insurance policy to cover your expenses, and leave the remaining $300,000 as of the death benefit!
Keep in mind that only certain types of illness may trigger your ability to access your benefit. That’s why it’s important to work with a licensed and qualified financial professional to create the right policy for you.
If you’re interested in what living benefits would look like for you, contact me. We can review your income and how much life insurance your family needs!
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¹ “This is the real reason most Americans file for bankruptcy,” Lorie Konish, CNBC, Feb 11 2019, https://www.cnbc.com/2019/02/11/this-is-the-real-reason-most-americans-file-for-bankruptcy.html