Living benefits are coming with Insurance policies like
Term and Universal life policies
Most companies offer them and you don’t even have to pay for them as you’d have to for other riders that you want in your life Insurance policy, such as Accidental death rider or children rider.
Living benefits are ways to access the death benefit of your insurance policy without you actually passing away.
Usually life insurance polices only pay out once and that is when you die.
Not with polices where you have this rider attached to.
Now nobody wants that to happen to and that are horrible situations to go through.
The idea is that once a certain condition happens to you, you don’t have to pay anymore future premium payments and the policy becomes paid up. You become your own beneficiary.
Different companies pay out different percentages of the death benefit.
Generally the policy needs to be in place for at least 90 days as well.
Chronic Illness benefit
In that case you’d have to be unable to do 2 out of the 6 activates of daily living which are
- Bathing
- Dressing
- Eating
- Toiletting
- Transferring
- Continence
If you can’t perform them for a period of at least 90 days, you can submit a claim.
Critical illness benefit
In that case you’d have one of the following conditions
- Heart attack
- Stroke
- Cancer
- Alzheimers
- Major organ failure
- ALS
- Blindness
- Heart Valve replacement
- Paralysis
- Coma
- Traumatic Brain Injury
Terminal Illness Benefit
You are terminally ill if a doctor tells you you only have 12 months left to live.
