Living Benefits
Are you like most people and think that life insurance is purely for death benefit and your beneficiaries? That’s the case. Life insurance contracts have evolved immensely. And yet, if you talk to a financial advisor, they say this is the wrong place to put your money because there are fees associated.
MAPFL BLOG
Why it's important to understand Living Benefits.
Are you like most people and think that life insurance is purely for death benefit and your beneficiaries? That’s the case. Life insurance contracts have evolved immensely. And yet, if you talk to a financial advisor, they say this is the wrong place to put your money because there are fees associated.
And they’re right. There are fees associated, but there are also benefits associated. Living benefits, okay? These living benefits are real. If you get diagnosed with a chronic illness, you can tap into your death benefit while you’re alive. Guess what? Those are dollar bills in your pocket, so that you can use to go to another country to try experimental treatment that’s not allowed here in the United States, um, or at least your insurance company won’t pay for it.
Your health insurance plan will only cover what’s your medicine. Anything that is traditional, naturopathic in nature, future medicine, Your medical plan, your Medicare plan will not touch it. So that’s why we recommend to all of our clients to always have a stand alone, either cancer, critical illness policy, or guess what?
Just buy a permanent life insurance contract. It’s going to take care of some of your retirement issues, but it’s also going to give you some additional benefits so that you can get diagnosed with something chronic. There are a lot of great benefits to these contracts. They’re not discussed. Most people think that life insurance is specifically what the name says.
Life insurance. But there are living benefits involved, folks. So, don’t overlook it.
Key Bullet Points:
1. Life Insurance Perception vs. Reality:
- Many people mistakenly believe life insurance is solely for providing a death benefit to beneficiaries.
- Life insurance contracts have evolved to offer more than just death benefits.
2. Financial Advisor Perspective on Life Insurance:
- Financial advisors often advise against putting money into life insurance due to the fees involved.
- While fees exist, there are also valuable benefits that people overlook.
- Living Benefits of Life Insurance:
- Some life insurance policies include living benefits that can be accessed while the policyholder is still alive.
- For example, if diagnosed with a chronic illness, the policyholder can use part of their death benefit to cover medical treatments or experimental therapies, even those not covered by traditional health insurance or Medicare.
- Health Insurance Limitations:
- Traditional health or Medicare plans only cover conventional medical treatments and won’t pay for alternative or experimental treatments.
- These limitations make additional insurance policies like cancer or critical illness policies
- Recommendation for Permanent Life Insurance:
- Permanent life insurance policies not only offer death benefits but also help with retirement planning.
- They provide extra financial security if the policyholder is diagnosed with a chronic illness, offering access to living benefits that aren’t widely discussed.
- Misunderstanding of Life Insurance:
- The name “life insurance” leads many to overlook the living benefits that come with certain policies.
- These benefits can be crucial for covering unexpected health issues and expenses.
Additional Main Points to Consider:
Additional Main Points to Consider:
1. Critical Role in Financial Planning:
- Permanent life insurance can play a dual role, both in securing a financial legacy for beneficiaries and in acting as a financial tool for retirement and health-related issues during the policyholder’s lifetime.
2. Flexibility of Life Insurance:
- The evolving nature of life insurance policies allows flexibility in dealing with medical and financial emergencies, which can be crucial for those with specific health conditions.
3. Preventative Strategy:
- Having a life insurance policy with living benefits is a preventative financial strategy, ensuring policyholders are protected against future health-related expenses that traditional insurance won’t cover.
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