In today’s fast-changing financial landscape, insurance professionals have an incredible opportunity to offer more than just traditional life insurance. By introducing policies with Living Benefits, you can provide clients with comprehensive solutions that address both anticipated and unforeseen financial challenges. Living Benefits ensure your clients’ policies work for them while they’re alive, not just after they’re gone.
Living Benefits are features within certain life insurance policies that allow policyholders to access a portion of their death benefit while still alive. These benefits become available upon experiencing qualifying health events such as critical, chronic, or terminal illnesses. This access can be instrumental in covering expenses that health insurance may not fully address.
Health-related financial burdens are a growing concern for many Americans:
Prevalence of Chronic Diseases: Approximately 60% of Americans have at least one chronic condition, and 42% have multiple, leading to substantial medical expenses.
Out-of-Pocket Healthcare Costs: In 2022, the average individual’s out-of-pocket healthcare spending exceeded $1,650, and that number continues to climb.
Medical Debt: Medical expenses are a significant contributor to personal bankruptcies, highlighting the need for supplemental financial protection during health crises.
While health insurance provides some coverage, there are significant gaps that leave policyholders with out-of-pocket expenses. Living Benefits can help bridge these gaps by covering:
Deductibles and Co-Payments Many health insurance plans require policyholders to meet high deductibles and pay co-pays for doctor visits, treatments, and medications. Living Benefits can cover these immediate costs, relieving financial pressure.
Non-Covered Treatments Some therapies, experimental treatments, or specialty medications may not be included in health insurance coverage. Living Benefits provide the flexibility to pursue these options without financial worry.
Home Healthcare and Rehabilitation Recovery often require in-home care, physical therapy, or rehabilitation services that health insurance may only partially cover. Living Benefits ensures clients can afford these critical services.
Lost Income During Recovery When a policyholder is unable to work due to illness or injury, Living Benefits can replace lost income, ensuring everyday living expenses such as rent, utilities, and groceries are manageable.
Family Travel and Lodging If specialized treatment requires travel or family support, Living Benefits can cover the associated costs, such as transportation, hotel stays, and meals.
Everyday Living Expenses Beyond medical bills, health crises can impact clients’ ability to keep up with mortgage payments, car loans, or tuition fees. Living Benefits provide a financial cushion during these challenging times.
Traditional life insurance policies are designed to protect families after a policyholder’s passing, but they fall short during the policyholder’s lifetime. Living Benefits address this gap, providing peace of mind and financial flexibility when it’s needed most.
Educate Clients: Use these real-world scenarios to show clients how Living Benefits can provide financial relief during critical times.
Personalize Recommendations: Assess each client’s financial situation and health risk factors to recommend policies that align with their needs.
Highlight Real-Life Testimonials: Share stories of clients who have benefited from Living Benefits to demonstrate their practical impact.
Collaborate with Experts: Partner with organizations like Alliance Group for marketing tools and resources that make it easier to communicate the value of Living Benefits to your clients.
Living Benefits are more than just an added feature of life insurance policies—they are a lifeline for clients facing health crises. By offering these policies, you position yourself as a trusted advisor who provides modern, relevant solutions.
Help your clients understand the full potential of their life insurance by explaining what Living Benefits can pay for. Together, you can ensure their financial security through life’s most challenging moments.