Life insurance was invented hundreds of years ago to address one common need: Protecting a breadwinner's family in the event of his sudden death. Over the years, though, life insurance products have evolved to suit more modern needs. For example, as funeral expenses increased it became common to cover the non-working spouse and children with a life insurance policy.
Today, we see that new needs have emerged. The high cost of health care, combined with the likelihood that you will survive a major health crisis, means that you could be facing a financial crisis as well. If you are seriously injured or suffer a chronic illness, it is highly likely that your earning abilities will drastically decrease. And yet, now you are suddenly facing mounting medical debt in the form of co-pays, deductibles, and prescription medications.
Unfortunately, this situation often leads to bankruptcy. At the very least, you could be forced to borrow from your retirement fund, leaving you a drastically reduced income in old age.
That's why life insurance companies have introduced living benefits riders, which allow you to receive a cash payout of your benefits in the event that you suffer a major health-related calamity. You get the cash you need to replace lost income or pay medical bills, and your family can be protected from foreclosure, bankruptcy, and loss of lifestyle.
Do you know if your life insurance policy includes a living benefits rider? If you aren't sure, schedule an appointment with your insurance agent to discuss your policy. If it turns out that you've been getting by on an outdated policy that doesn't offer you the best protection, it would be wise to consider updating it to a more modern, evolved policy. Your life insurance agent can explain how living benefits riders work, and help you select the policy that is right for you.
Carstens Financial Group focuses on providing comprehensive asset management, estate planning and life insurance solutions. Allow us to help you secure your financial future.