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What Living Benefits Cover That Health Insurance Often Doesn’t

Written by Eric Estrada | Jan 7, 2026 5:30:00 PM

One of the biggest misconceptions clients have is believing health insurance solves every problem during a serious illness. In reality, many of the most financially damaging costs happen outside the hospital.

This is where living benefits shine.

The Gap Health Insurance Leaves Behind

Even with solid coverage, clients often face:

  • High deductibles and coinsurance

  • Out-of-network or non-covered treatments

  • Lost income during recovery

  • Lifestyle and support expenses

Living benefits don’t replace health insurance—they support it.

Real-World Uses of Living Benefits

Because payouts go directly to the client, funds can be used for things like:

Alternative or Complementary Treatments

  • Holistic care

  • Experimental therapies

  • Out-of-network specialists

  • Travel for treatment

Income Replacement

  • Time off work

  • Reduced business income

  • Caregiver income gaps

  • Extended recovery periods

Lifestyle & Support Costs

  • Home modifications

  • Transportation

  • Childcare

  • Meal services

  • Temporary housing for family members

A Simple Example

A self-employed client is diagnosed with cancer. Health insurance covers treatment—but not:

  • Three months of lost income

  • Travel to a specialized treatment center

  • At-home care during recovery

A living benefit payout fills that gap without loans, credit cards, or early retirement withdrawals.

Why Clients Value Flexibility

The most powerful phrase in a living benefits conversation is:

“You decide how the money is used.”

That flexibility is what makes living benefits feel personal, not clinical.