Leading Your Sales Presentation with Life Insurance Living Benefits

Although life insurance death benefit proceeds can provide financial security for an insured’s survivors, this financial vehicle can also be used as a tool for solving a wide variety of needs while the policy holder is still alive.

One way is to make use of the cash value in a permanent life insurance policy for paying off high interest debts, providing a child or a grandchild with funds that they need for college, and / or any other want or need. In this case, money may be withdrawn or borrowed from the cash surrender value of the policy.

But there are also ways that a policy holder may be able to access some (or even all) of the death benefit funds for various needs. This can be accomplished by adding a living benefits rider.


Life Insurance and Living Benefits

While all policies may differ, many insurance carriers offer living benefits riders that allow death benefit proceeds to be accessed under certain circumstances. These may include:

  • Terminal Illness – If the insured is diagnosed with a terminal illness (oftentimes with a life expectancy of 12 months or less), a portion of the death benefit proceeds may be paid out in order to help with the payment of medical costs, or any other want or need that is determined by the insured.
  • Chronic Illness – A chronic illness diagnosis may also trigger eligibility for a living benefits payout. Generally, an individual is considered to be chronically ill if they are unable to perform two of six “activities of daily living.” These typically include bathing, dressing, continence, toileting, transferring, and feeding.
  • Critical Illness – A person who is diagnosed as being critically ill may also be able to receive living benefits from their life insurance policy for use while still alive.

There are any number of ways in which life insurance policy holders can benefit from a life insurance policy, both term and permanent coverage, while they are still living. Doing so can help to ease the financial strain of uninsured medical services and / or other monetary hurdles.

Before accessing a life insurance policy’s living benefits, though, there are some important considerations that policy holders need to keep in mind. A primary concern is that the portion of the death benefit that is accessed will be deducted from what the beneficiary will ultimately receive upon the insured’s passing. So it is important to help clients with weighing both the pros and cons in this scenario.


Finding More Prospects Who Could Gain with Living Benefits from Life Insurance

While many people – both consumers and insurance professionals alike – may feel that the only way to “win” with life insurance is when the insured passes away, the reality is that these financial tools can provide solutions for a long list of other pressing financial needs.

But in order to provide individuals and families with this potential problem solver, it is first necessary that you have people to talk to. Contrary to popular belief, it doesn’t have to take endless hours of cold calling in order to get in front of the right prospects.

Would you like to start generating a predictable – and ongoing – flow of additional leads for your life insurance business? If so, you will not only be able to solve for more clients’ needs, but also generate thousands of additional dollars in commissions every month.

Want more information?

If so, just give us a call, toll-free, at 1-800-643-6143 and we will provide you with all of the details that you need to get started.

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Brian J. Kay, Executive Director, Leads4Insurance
921 Port Washington Blvd., Suite # 3 Port Washington, NY 11050
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