When life insurance was first designed back in the 1600s it did one thing: The policy would pay benefits to your heirs after your death. This was one way to ensure that if something should happen to you, your family would be protected. Life insurance was especially important for the household breadwinner, usually the husband, because the rest of the family depended upon his ability to work.
But like all things, life insurance has evolved. Did you know that 90 percent of people who have a heart attack survive the crisis? And yet, their health and ability to work might be drastically altered afterward. The same can be said of those who suffer strokes, accidents, and other major health crises.
After a major health crisis, two things almost always happen: Your expenses go up, due to high medical bills and the cost of personal care, and your income goes down because you’re unable to work anymore. Just one illness or serious health crisis can put your family at serious risk of financial problems. In fact, 60 percent of all bankruptcies are directly due to health care expenses and lost income after a major health event.
Luckily, the world of life insurance has changed to help policy owners cope with these drastic circumstances. Nowadays, many life insurance policies offer “living benefits”, which means you can collect your payout if you suffer a critical or chronic illness. A policy which pays out a living benefit can be a financial lifeline if you are ever seriously ill or injured, and need cash benefits right away.
In short, living benefits mean the difference between surviving a health crisis, and having a life afterward. Do you know whether your current life insurance policy includes a living benefits clause? If you have a death-only policy, you might want to think about making sure your family is protected if you suffer a serious health problem. Talk to your insurance professional today, and investigate your options for a new, upgraded life insurance policy.
Call Mercedes at (760) 436-1711 to schedule an appointment with our partners at Five Rings Financial and discuss Living Benefits in more detail.