The main reason people buy life insurance is to protect their loved ones in case of an unexpected death. But, did you know that certain types of life insurance come with something called “living benefits”? This means that while you’re still alive, you may have the ability to access the policy death benefit (the funds from your policy designated for your beneficiaries).
For example, in the case of certain qualifying illnesses, if eligible, you could access a portion of the policy’s death benefit, which can be used to help cover the cost of medical expenses, pay off your mortgage while you’re ill, take a family trip around the world or whatever you decide. You should speak with your accountant or tax adviser to understand the impact of using a life insurance death benefit in this way.
Of course, if you access funds that were intended as death benefit proceeds for your beneficiaries, this amount will generally reduce the ultimate payout they were originally supposed to receive. It is important to note that if you elect to receive “living benefits” the benefit you actually receive is generally less than what would have been paid to your beneficiaries.
But sometimes life hits us in unexpected ways, and illnesses can be devastating to your financial health, too.
Give us a call today learn more about living benefits, and educate yourself on the options available through your policy.
Jay Gray – 877-777-7055
