Benefits of Having Life Insurance Living Benefits to Rely On
There are several reasons why life insurance living benefits may be attractive. For instance, with people living longer now, the need for long-term care has become a viable – and costly – concern. And, even though living benefits should not be considered as a replacement for long-term care insurance, they can provide a way to protect other financial resources from the high cost of care.
Likewise, even if you are covered by Medicare or another form of health insurance, there can still be a long list of copayments, coinsurance, and / or deductibles to be paid out-of-pocket. So, having a source of funding for these could help to pick up the tab.
Some Items to Consider Regarding Policies with Living Benefits
Although there are numerous advantages to owning a life insurance policy with living benefits, there are also some key considerations to keep in mind. First, you need to make sure that removing a certain amount of the policy’s death benefit will not create a future financial burden on the beneficiary.
Additionally, even though the amount of the death benefit will be reduced when living benefits are accessed, it is important to keep in mind that the policy’s premium must still be paid in order to keep the policy in force. Otherwise, it could end up lapsing.