Simply stated, a Living Benefit is a feature of a new kind of life insurance policy and one most individuals and families would never want to be without. If you asked your friends, neighbors and co-workers if they had life insurance with Living Benefits, 99% would not understand the question or say no.
The Accelerated Death Benefit is a type of Living Benefit that allows a covered person to withdraw up to 95% of the face value of the policy or death benefit if a heart attack, stroke or cancer is diagnosed and the covered person does not die from one of these illnesses. The Buckley Agency only offers this type of Term, Universal or Whole life policy.
In numerical terms, using a $200,000 policy face value as an example. this policy would provide the following tax-free disbursement of cash under the Accelerated Death Benefit feature:
Event: Heart attack, stroke, cancer or critical/chronic illness depending on severity:
Enter any dollar amount for this example: $400,000 x 95% (.095) = $380,000 tax-free payout.
(scroll down for a picture explanation)
Let’s Demystify this picture. On the left there are two lines:
- Your household (2) incomes is the top line. Your household expenses are the bottom line
The difference between the two is your spendable income or savings - The vertical dashed line represents your health event.
3. During your recovery since you could not work your income would eventually stop. At the same time Household expenses rise due to hospital, doctor bills, co-pays, skilled nursing, rehab, physical therapy, etc and other medical expenses you may not be covered for. If the diagnosis is cancer and your spouse has to stop working to care for you how will you replace your second income?
4. When your expenses exceed income it begins to eat into savings, nest-egg, 401K, etc or else this creates DEBT.
5. Rapid access to the tax-free death benefit from your life insurance policy is your ready pool of tax-free cash that you cannot touch unless you have a health emergency. By withdrawing up to 95% of the death benefit, while you are still alive, depending on the severity, helps you pay for your mounting expenses. For many families, this eases the debt burden or wipes it out completely. Keep your family in your home.
Most Americans report not having enough savings to miss 2-3 paychecks without feeling the pinch. Missing 4 pay periods puts most families in financial trouble these days. Your bank expects the mortgage payment, car payment and colleges or private schools expect their tuition payments on schedule, not to mention food, utilities, gas and the basic necessities of life what would a family do without a Living Benefits policy?
Invite me over to show you how this works.