Life insurance is typically considered something that assists people after death—however, permanent life insurance with living benefits can provide immediate, and significant, financial assistance to people in need.
A living benefit rider can be written into a life insurance policy to allow the client to draw upon the policy’s cash value in the event of a terminal illness. What are the benefits of whole life policy with this option?
- Financial assistance: Mounting medical bills from serious illnesses like cancer can quickly bankrupt a patient.
- Future financial security: Taking care of debt associated with a medical crisis as it occurs helps families avoid years of complications.
- Peace of mind: Knowing that you can tap into the cash value of your life insurance policy may provide a needed sense of security in an otherwise worrisome time.
- Dignity: Having access to financial assistance means a patient with a terminal illness is able to control his or her final days.
- Stress reduction: Stress has been shown to increase a person’s risk for medical complications, so someone fighting an illness can benefit physically from being able to proactively manage finances.
There are life insurance advantages and disadvantages, however, as not all plans offer the living benefit option. For instance, if you’re considering what are the benefits of term life insurance, it’s important to note that term policies don’t allow policyholders to draw on the cash value during life, as they’re only available for a certain length of time. That’s where Life Credit’s Living Benefit Loans can come in.
The benefits of this program include:
- Financial help, regardless of policy: Life Credit provides loans no matter what type of policy the client has.
- Assistance, regardless of prognosis: Most living benefit riders require that the policyholder be given less than a year to live. Life Credit disperses loans regardless of a patient’s prognosis.
- Immediate loans: Life Credit avoids the red tape usually associated with living benefit programs and gives clients access to their money within days of a completed application.
- No premiums: Life Credit will pay the premiums on a client’s life insurance policy, further lessening their financial burden.
- Flexibility: Some living benefit riders require the payments be used in certain ways, but Life Credit does not impose such restrictions, allowing clients to use their cash however it will best assist them.
Life Credit believes that life insurance is an important asset, but its benefits can be maximized if it’s accessible during life. Financial assistance for cancer patients and others can not only address serious financial challenges but provide significant stress reduction which, to someone facing a medical crisis, is priceless.