Posted on October 2nd, 2023

Story by Verbz Bermudez 

Picture this: You've purchased life insurance and, as the name suggests, it's all about... well, life. But wait, there’s a twist! How about getting some of those benefits while you're still sipping your morning coffee and complaining about Monday blues?

"Living Benefits": The Life Insurance Party Trick! 🎉

Now, let's face it, an article about life insurance might sound as exciting as watching paint dry. But stick around! There's more to this tale.

"Living Benefits"(1) is that cool cousin of life insurance who lets you enjoy the party before it even starts. How? By allowing you to access a portion of the death benefits or cash value while you're still, you know, living.

"Did you know?" Corner: 35% of life insurance holders get it for final expenses. BUT a whopping 44% anticipate using it for income before their final curtain call, as per our friends at LIMRA. (2) 

The Good Stuff: Accessing Benefits! 💰

Scenario 1: You're sick. Not the 'Monday morning I need a day off' sick, but really sick. Some policies allow you to take some (or a lot) of your death benefit in advance.

Scenario 2: Your policy's been stacking up cash like a squirrel before winter. Time to tap into that cash value for a myriad of reasons - be it a dream vacation or that new roof you've been putting off.

"This Sounds Complicated. Break it Down, Please?" 🤔

How to Use Living Benefits: 

- To make your house feel like home again with modifications.

- Nursing care, adult day care, or just taking care of the monthly bills.

- Or, how about that once-in-a-lifetime trip to see the Northern Lights?

Qualifying for Living Benefits: Think of it as the “life insurance trifecta”:

1. Terminal Illness: The doctor gives you a timeline.

2. Critical Illness: Conditions range from that pesky cancer to heart issues.

3. Chronic Illness: Daily tasks like bathing or eating become challenging.

Fun Fact: Insurers actually hope you never have to use these. But isn’t it comforting to know they're there? Like that spare tire in your car.

"What About Cash Value? Any Perks There?" 💸

An IUL policy isn’t just about death benefits. Oh no! Its value can grow, offering you a chance to take out loans or make withdrawals for more "everyday" needs.

Tips & Tricks:

- Loans: Wait a bit, build some cash value, then think about borrowing.

- Withdrawals: It's like your policy's way of saying, "Here, you might need this."

"This Sounds Too Good. What's the Catch?" 🧐

Always, always, chat with a financial professional before you tap into these benefits. They’ll guide you through the maze and ensure you avoid any booby traps!

Wrap-Up: Life insurance isn't just about what happens at the end. With living benefits, it's about enhancing the journey along the way. Here's to making the most of life's wild, unpredictable, and precious moments! 🍻🌟

Please don't hesitate to reach out to us at [email protected] or Call | Text at 832-885-2067 set up a free comprehensive financial planning appointment. Opens Sundays through Thursdays 8AM to 5PM; Fridays 8AM to 4PM all available hours in Pacific Standard Time. We look forward to hearing from you and helping you achieve financial security and peace of mind.

We look forward to helping you protect what matters most!

(1) Living benefits are provided by no-additional premium accelerated benefit riders.  Payment of Accelerated Benefits will reduce the Cash Value and Death Benefit otherwise payable under the policy.  Receipt of Accelerated Benefits may be a taxable event, may affect your eligibility for public assistance programs, and may reduce or eliminate other policy and rider benefits.  Please consult your personal tax advisor to determine the tax status of any benefits paid under this rider and with social service agencies concerning how receipt of such a payment will affect you.  Riders are supplemental benefits that can be added to a life insurance policy and are not suitable unless you also have a need for life insurance.  Riders are optional, may require additional premium and may not be available in all states or on all products.  This is not a solicitation of any specific insurance policy.

(2) Life Insurance Marketing and Research Assn. / Insurance Barometer Report “Life Happens” / Reasons for Purchasing Life Insurance, p. 38, 2019.