Many Americans are familiar with the concept of a death benefit, or the amount paid out from your life insurance policy after your passing. However, fewer people are as aware of the idea of a living benefit, which can be just as crucial to a family during a loved one’s final days.
Living Benefits on Life Insurance Defined
A living benefit is a portion of a person’s death benefit from their life insurance company, typically granted to an individual when he or she is facing a terminal prognosis. Living benefit programs vary depending on the provider but most require the insured to provide proof of an illness that is expected to claim his or her life within 24 months. If the applicant is approved, living benefits typically range from a quarter to 100 percent of what the policy’s death benefit amounts to and can be used for whatever the policyholder needs. The individual may choose to use the funds for medical care, or to plan ahead for funeral or other end-of-life expenses.
Planning for the Future
The prospect of a terminal illness is a frightening one that many people don’t want to seriously consider when making plans for their future. Because of that fear, some may miss out on the opportunity to add a living benefit rider to their life-insurance policy, and many companies won’t approve such additions, even in an emergency situation.
Closing that gap is a goal of Life Credit Company’s living benefit loans. Such loans allow applicants to receive a portion of their insurance policy’s death benefit while still living. Since the program does not require a terminal prognosis for eligibility, this vital funding can help those confronting a medical challenge like cancer to deal with their diagnosis head-on. From hospital bills to treatments to medications, the loans can be used to keep a patient on the path to health. A medical crisis brings with it a host of interruptions to one’s life, such as reduced working hours, added child-care needs and transportation costs, and the living benefit loans can also go a long way to address those issues.
We’re not always prepared for health emergencies, but important financial resources like Life Credit Company can put a plan in place to get patients’ physical and financial health on the rebound.