Your Guide to Living Benefits in Insurance Plans
“Living Benefits” has become the phrase for companies marketing Critical Illness insurance plans and rightly so.
But what exactly are living benefits and what is making them so popular as insurance products? Generally people only considered protecting their family in the event of their passing. With the advancement in medical technology we generally survive an event that used to take our life.
Imagine someone has a Life Insurance policy with a $500,000 death benefit. This will pay a benefit on their passing but what if they survive a heart attack or are diagnosed with cancer? They are going to have a drastic change in lifestyle and income for a lengthy period of time. This is where the Critical Illness plans or Living Benefits come into play. The topics to follow will describe plans available in the marketplace, today, and their features and benefits.
According to statistics, you are much more likely to survive a critical illness than die, hence the need for a living benefits insurance plan designed to pay the policy holder with benefits in the event he continues living.
If you are an insurance agent or financial advisor, it is vital you advise your clients on the importance of living benefits in their insurance policies. You do not want to be at the other end of an upset family who cites you for failure to properly advise them on their insurance needs.
What are the different types of Living Benefits available in insurance policies?
Specified Disease Plan:
Cancer Plans: This type of plan is really the most popular. Cancer plans are designed to cover specific cancer conditions and related treatments. Based on the type of plan purchased one will either receive a lump sum cash benefit or will be paid on an indemnity basis.