Here’s a way to increase the value and protection that you get from your Living Benefits Life Insurance…Have your cake and eat it too!
This year several clients have had to use their living benefit plans. The common theme among them is this: “I am very thankful – it was great to get the money – but now I wish I had purchased a larger policy so that I had still had life insurance!”
Based on these clients’ experiences we’ve come up with a concept called “have your cake and eat it too……”
Here’s an example of how it works. Let’s say that you currently have a $750,000 policy that’s good for 19 more years. The preferred plus monthly rate is $245.23 with AIG.
With this policy, if you die the beneficiary gets $750,000. If you have an illness that triggers an accelerated benefit (and for this example let assume a 50% acceleration that pays $375,000) you are cashed out – with no more benefit left on the policy.
But what if…
You reduce the benefit term by 4 years and changed the policy to $750,000 for 15 years. Here’s what you could get:
- If you pay an additional $13.32 per month you could get $300,000 more coverage for 10 years. Wow!
- If you pass your beneficiaries would receive $1,050,000. That’s an extra $300,000.
- If you have an illness that triggers an accelerated benefit (assuming 50% typical benefit) you receive $525,000.
- Cash out the $300,000 increase in coverage (assuming 50% typical benefit) and get $150,000 benefit and STILL have the whole $750,000 in reserve.
An even better option: You could match the second policy to 15 years for only $33.12 more per month – making it an even better option!