Term Life Insurance with Living Benefits


Term Life Insurance including Living Benefits

Ben and Barbara are a young couple, healthy and in their early thirties with two young children, ages 6 and 3.

They both had jobs and between the two of them, they managed to provide a good home and a comfortable lifestyle for themselves and their kids. Like most families, they realized they needed a little more living space and a larger yard to enjoy.

Ben and Barbara found that new home in a well established neighborhood which was close to everything. The lender offered them mortgage protection insurance which would pay the mortgage if something happened to either of them. It was pricey and didn't fit their budget. Besides, if they moved or paid off the mortgage, the coverage ended.

Solicitations from agents hounded Ben and Barbara and the more they looked, the more confusing term life insurance became. They had many questions but they hated the pressure from salespeople.

Then they found a website which allowed them to search many top insurance companies, get quotes on the best term life insurance and ask question of an independent life insurance agent. The agent was able to complete a health analysis which showed the couple which company would most easily and quickly approve them at the best term life insurance rates. Medical exams were not needed which sped up approval.



Ben and Barbara applied for and were approved for $500,000 of 30-year term life insurance.
A few years later, Barbara started to experience health issues. She became fatigued easily, lost her appetite, often nauseated, and began experiencing abdominal pains. Her doctor diagnosed her with stomach cancer and further tests revealed she would never recover. She was given only a small chance of living more than two years.

Their agent called on them and reminded them Barbara's policy had an added benefit known as a Living Benefit or Accelerated Benefit rider. The agent helped them submit a claim to the insurer to access this benefit.

The insurer approved the claim based on Barbara's prognosis and sent the couple a check for $468,159. That money was certainly welcome since there were unpaid medical bills and more to come. Ben and Barbara could use that money any way they choose. It is also tax-free since the payout is considered insurance proceeds. In addition to paying off remaining medical bills, the money was used to pay off the mortgage and set something aside for the funeral.

The life insurance you choose should be more than a death benefit. Consider what Ben and Barbara's story means to those who are still living. 

More importantly, that Living Benefit allowed Ben and Barbara to enjoy the time they had remaining together with their children with one less worry.













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