Living Benefits

The Benefits Of Living Benefits

Life can throw you some real curveballs, but you shouldn’t have to scramble financially! Our team at Best Life Insurance Houston can help you by matching your needs with the right policy. At Best Life Insurance, we do our best to ensure that any life insurance policy you accept has a Living Benefits rider attached.

A rider works as an add-on or an amendment to an insurance policy. In the case of Living Benefits, this is a very typical rider or add-on to an already existing policy. A Living Benefits rider can be added to both personal and business forms of life insurance policies. In fact, in most cases, you can add this rider to your preferred policy at no additional cost to you.

Living Benefits are, simply put, a way to access some of your death benefits while you are still alive. You should also note that Living Benefits is always used as a rider; an attached add-on. It is not a stand-alone insurance option, but it can be added to nearly any type of policy.

This addition can be attached to both personal and business insurance. However, you might fare better in terms of cost with personal. At Best Life Insurance Houston, we want you to get the most out of your life insurance policy.

What benefits someone else might not work for you, which is why we look to customize our policies to match our clients’ situation. Our team can meet with you, and together we can work to build a policy that strengthens your needs. Give us a call today and get the ball rolling towards the best possible insurance plan for you!

The most important aspect of Living Benefits as an attached rider to your insurance policy is that it is not death insurance. The misconception of Living Benefits is that people think you must be terminal to utilize this type of add-on. However, there is more than one way to qualify and access this insurance aside from being terminal.

The point of a Living Benefits rider is to be able to access and pull money while you are still alive. You should still take note that Living Benefits don’t work in the same ways that other types of insurance do. Unlike Whole Life Insurance, this rider doesn’t accumulate money over time. This means that the only build-up would be from the premieres that you pay for your standard life insurance policy.

In fact, when you pull money with the Living Benefits rider, you are diminishing your death benefits. To be clear, a death benefit is a payout your beneficiary would receive after your passing. Any funds you pull while you’re still alive (using the Living Benefits rider) will take away from the funds that your beneficiary would receive.

Yes, Living Benefits are something you would have to qualify for. Our team at Best Life Insurance Houston can help you determine whether or not you are eligible. However, if your health is too low to meet the required standards set by the medical professional or company, then you could be disqualified. You can be disqualified for either critical or chronic; however, the terminal rider is typically a guarantee for the Living Benefits option.

Depending on the insurance company, there might be other qualifying factors. These factors being a person’s age, gender, and possibly location. Still, our team typically matches qualified people to the policies that would benefit them best. More often than not, that means matching them with policies that have this add-on built-in already.

Not everyone can just access their Living Benefits, as you have to qualify to even access the insurance after you get it attached to your policy. This type of qualification typically is enacted after a “major life event” or a “trigger” that happens. Once a trigger has occurred, you can begin the steps in accessing the money.

The three triggers that can occur are:

Both the Critical and Chronic illness have their own set of qualifiers that you would have to submit to. In fact, one of the qualifying factors for Chronic Illness is daily activity function. Meaning if you can not do two of the listed activities without assistance, then that is a check in the qualifying box for this add-on.

These benefits are typically used to help cover medical and facility bills. However, there are no regulations on what the money is used for once you receive it in most cases.