If you remember through the years, life insurance was just life insurance. If the insured passed on, the policy would pay out the designated face amount to the beneficiary. For all practical purposes that was it and the policy terminated after the payment of the death benefit. That was the way it was since the invention of life insurance in the very beginning in the early 18th century. With most people this concept was considered the dark side of the policy because it was only good if you passed away.
A lot has changed through the years and the policies can do a lot more than just pay a death settlement. We can now purchase Term life insurance that has many benefits while we are all still alive. These added benefits change the course of life insurance.
The added cost for these Living Benefits is minimal and they add a huge amount of added value to your life insurance policy.
If you are like most consumers and looking for the most bang for your buck, these modern term life insurance policies really deliver the goods. The first idea consumers would think about is the added cost to implement these benefits into the policy. In many cases the extra cost factor would be less than 10% of the cost of policy without the living benefit riders. One of our favorite companies offering these excellent plan designs is Transamerica.
They were one of the pioneers in living benefit type policies and still are one of the best sources from plan benefits to having the most competitive premiums and the lowest life insurance rates. Especially in a world of high out of pocket expenses with health insurance and the ever rising high cost of living that keeps going up and up.
Here are some of the main benefits these hybrid Term life insurance plans cover versus the conventional plan designs we are used to having.
With these additional benefits you have a full complement of Critical Illnesses that will be covered by a lump sum payment. For example; if you had a heart attack or a stroke and you survived which is very common now with medical technology today, you would qualify for a lump sum benefit. You could use this money to cover medical expenses, loss of income due to not working because of your illness or simply paying for the usual day to day expenses you encounter in everyday life.
Usually when you are off work and recovering from a medical issue, money can get very tight due to extra bills you would encounter stemming from your hospital stay. The same would hold true for other situations such as Cancer or kidney failure. It is a very simple concept when you research a standalone Critical Illness policy which would do the very same job but also be much more expensive.
The living benefit lump sum payment usually varies between 75% and 90% depending on the state you live in.
As an example, if you had a heart attack and was hospitalized for a week and released or had to remain in the hospital for surgery, this event would trigger the Critical illness rider and you would qualify for a payment. The reason there is a maximum percentage is some of the face amount has to be retained for a death benefit which is the main reason you purchased life insurance in the first place.
A conventional Term or Universal life insurance policy has no provisions for lump sum payment for anything other than the death benefit. This policy design allows you to have the security of protection due to medical conditions arising while you are living and a policy face amount death benefit.
Chronic Illnesses are also covered and work the same as the Critical Illness category of the life insurance policy.
Chronic illnesses such as emphysema, rheumatoid arthritis, ALS, Diabetes, Alzheimer’s disease, COPD and other illnesses that you have developed that are preventing you from living a normally life and requiring medical care can also be covered by the chronic illness benefits of the policy. For the perspective insurance buyer who would like to have more to show out of his or her life insurance can find the answer with this living benefit policy for a few dollars more every year. Long Term Care insurance can also be incorporated in some of the carriers plan designs also. These are some of the best improvements ever made to the life insurance industry.
Our quote engine is available for you to use at no expense or obligation. You will be able to compare conventional and living benefit life insurance side by side.
Take advantage of our quoting tool where you can compare low cost term life insurance from over 40 life insurance companies. Shopping for affordable life insurance is very easy today because of the simple and quick quoting process we have now. Feel free to contact us 7 days a week and get answers to any questions you may have. We can show you all your options and supply you with the best life insurance quotes for your state. Thank you for reading our blog post Low Cost Life Insurance you cannot afford to Pass Up.