It’s not often when a term like “groundbreaking” is applicable to life insurance policies. But in this case, the option to draw against the face amount of a life insurance policy is a game-changer for nearly every owner of a life insurance policy. The idea of taking a no-cost advance when you might need it most could prove to be invaluable one day. Sometimes referred to as Living Benefits, this Advance Option is revolutionizing life insurance coverage.
Does your current policy allow you to take a no-cost advance against the face amount of up to $2,500,000? Most likely, it does not. But now, you can get a policy with Living Benefits. Term and permanent policies from several, top rated carriers.
Living Benefits turn life insurance into an asset with a dual purpose. In addition to providing traditional life insurance benefits for your beneficiaries, the policy can also act as an emergency health fund in case you have a chronic or critical health event. Most people are still unaware of this value, but that is changing. More and more of the policies we write now include this advance option, FOR NO EXTRA PREMIUM.
“Am I borrowing the cash value from my policy”? The answer is NO. This is the number one question people ask. The option to take an advance against the face amount has nothing to do with cash value. In fact, the option is available on term policies which never have cash value.
How Does It Work?
For a person who suddenly has a stroke, the Living Benefits option will allow the policy owner to draw against the face amount of the policy by taking an advance. Let’s assume he or she wants $250,000 to help manage the stroke recovery process and let’s also assume this person has a $2,000,000 face amount with accelerated benefit options. A stroke qualifies as a critical health event. It’s different than something like MS or Parkinson’s. Those are also qualifying illnesses. They are considered to be chronic illnesses which are also covered, but only when you have the right policy.
At the time of an event, we recommend that our clients contact our office and we will help with the claim process. Or, you can contact the insurance company directly. Once the claim is approved, there is a permanent adjustment to the face amount and the ongoing premium is lowered. The advance is not taxable which you will want to verify with your CPA.
Adding the Accelerated Benefits Option to Your Coverage.
Once you select the best policy for you, there is no additional underwriting and no additional cost for Living Benefits to be included. For many people buying less than $3,000,000 of coverage, some companies no longer require traditional underwriting, meaning that no medical exam or doctor visit is necessary. With one phone call, a policy can be issued. By applying to the right company or companies, the Living Benefits option will be automatically included in the coverage. It is worth noting that all Living Benefits are not the same. You want a policy that covers critical, chronic and terminal health issues – ALL 3 AT NO ADDITIONAL COST. There is no downside in having this extra layer of protection. Whether you have a term policy or a permanent policy, the advance option is available.
To get a quote or start a dialogue, complete the contact form on this page or any page on our site and we’ll contact you immediately. Or, you can contact Ted Bernstein at 561-869-4500 and by email.
To hear testimonials: https://vimeopro.com/aigmarketing/main/video/303384330 / https://vimeopro.com/aigmarketing/main/video/142685717
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