Life insurance with living benefits can help to cover medical bills and other expenses. Learn about the types of living benefits offered through Matrix Direct.
Each year in the U.S., chronic disease accounts for roughly 75 percent of the nation's aggregate health care spending — or an estimated $5,300 per person.1 Those costs can introduce financial hardship into the lives of patients already suffering from physical hardship.
While we can't predict what the future holds for our health, we can plan ahead — before a health condition or illness occurs — through life insurance with living benefits.
Traditionally, life insurance policies provide a set amount of money (the "benefit amount") to a predetermined person (a "beneficiary"), after the policyholder passes away. Life insurance with living benefits, on the other hand, offers options that can potentially provide benefits to the policyholder — during his or her lifetime.
These funds can help to ease the burden on you and your loved ones, who might otherwise have to shoulder your outstanding medical debt down the road. Here are some of the options for life insurance with living benefits.
Quality of Life... Insurance
Quality of Life... Insurance is term life insurance that has "living benefits" baked into the policy. Policyholders with qualifying chronic, critical, and terminal illnesses or conditions may be able to advance the payment of their policy's death benefit, which can help to cover the costs of medical expenses or recoup lost income.
The payment can also be used for retirement, emergencies, or anything else; it's entirely up to the policyholder. You don't have to pass away to receive these benefits, which is why they are called "living benefits."
These funds can also help you to:
- Respond to the effects of qualifying chronic illnesses that substantially reduce your ability to perform simple tasks
- Reduce the financial effects of invasive cancer, major heart attack, stroke and certain other qualifying critical illnesses or conditions
- Financially make the most of your remaining journey following a terminal illness diagnosis
Terminal Illness Life Insurance Rider
If you have an existing life insurance policy, there may also be an option to "add on" living benefits, through a Terminal Illness Rider.
Terminal illnesses take a physical, mental and financial toll on the patients and the people closest to them. A Terminal Illness Rider, offered through Matrix Direct, can help to provide financial relief, covering costly doctor's visits and medical treatments. It offers a one-time acceleration of up to 50 percent of the death benefit from your life insurance policy (not to exceed $250,000), following a terminal illness diagnosis. This rider can be added onto a life insurance policy, such as Term Life Insurance or Universal Life Insurance.
Guaranteed Issue Whole Life Insurance
Guaranteed Issue Life Insurance provides coverage for up to a lifetime, which can help your loved ones pay for medical bills, credit card debt or funeral costs. Additionally, if you're age 50 to 85, you can't be turned down for any health reason.
You'll also receive living benefits for qualifying chronic or terminal illnesses. For chronic illnesses, this benefit returns all of the premiums paid when the insured can't perform two of the six "activities of daily living" (bathing, continence, dressing, eating, toileting, transferring) or is diagnosed with a severe cognitive impairment like Alzheimer's or dementia. For terminal illnesses, the benefit provides 50 percent of the applicable death benefit at the time of acceleration.
There's nothing more difficult than being diagnosed with a serious health condition. Life insurance with living benefits can help to ensure your loved ones are covered financially, so that your family can focus on what matters most — spending time together.
To find out if you qualify for life insurance with living benefits or to ask questions, please call 800-294-4544.
1. "Why We Need Public Health to Improve Healthcare;" National Association of Chronic Disease Directors; Web; Accessed October 2018 (https://www.chronicdisease.org/page/whyweneedph2imphc)