With the rise of medical costs many people are concerned. Many policies now offer living benefits and long-term care (LTC) benefits that you can use while you’re still alive.
These features provide financial support in case of chronic illness, disability, or other significant health issues. But what exactly are living benefits and LTC benefits, and how can they help you?
Living Benefits
Living benefits, also known as accelerated benefits, allow policyholders to access a portion of their life insurance death benefit while still alive. These benefits cover expenses related to serious health conditions. Common types include:
- Chronic Illness Rider: Provides a payout if you are diagnosed with a chronic illness affecting daily activities like bathing, dressing, or eating.
- Critical Illness Rider: Offers a lump sum payment if diagnosed with a critical illness like cancer, heart attack, or stroke.
- Terminal Illness Rider: Allows access to a portion of your death benefit if diagnosed with a terminal illness with a limited life expectancy.
Long-Term Care Benefits
Long-term care benefits help cover the costs of long-term care services, including nursing home care, in-home care, and assisted living facilities. Key features include:
- Various Care Settings: Coverage for care in different settings, allowing you to choose the type of care that best meets your needs.
- Asset Protection: Helps protect your savings and assets from being depleted by the high costs of long-term care services.
- Flexible Payments: Benefits can be paid out as monthly benefits or a lump sum, providing financial flexibility.
Benefits of Adding Riders
Adding living benefits and long-term care riders to your life insurance policy offers several advantages:
- Financial Flexibility: Access to funds when you need them the most.
- Peace of Mind: Financial support in case of serious health issues or long-term care needs.
- Asset Protection: Helps protect your savings and assets.
Considerations
Before adding these riders, consider the following:
- Cost: Adding these riders will increase your premium.
- Eligibility: Some riders have specific eligibility requirements.
- Policy Terms: Understand the terms and conditions, including exclusions or limitations.
Conclusion
Living benefits and long-term care benefits can provide valuable financial support and flexibility, enhancing your life insurance policy beyond the standard death benefit. For personalized assistance in determining the best options for your situation, reach out to us at team@rwealthgroup.com or call/text at (813) 761-2836. Our team is here to help you navigate the complexities of life insurance and ensure you have the coverage you need.
Reference
Lincoln Financial – Long Term Care Planning: https://www.lincolnfinancial.com/public/individuals/products/longtermcareplanning?gad_source=1&gclid=EAIaIQobChMIhJjI1MLbhgMVHQ2tBh2zBwrXEAAYAiAAEgIZevD_BwE&gclsr