When we talk about assets, most people instantly think about owning a house. But what if we told you that your best asset is actually your ability to earn income? Having coverage to protect your ability to make money is the foundation of your financial plan – and Living Benefits can give you that.
What are Living Benefits?
Living benefits are a type of insurance benefit, they can include accelerated death benefits, long-term care benefits and most important disability and critical illness benefits. These living benefits can provide financial support to policyholders in the event of a serious illness or injury, helping them pay for medical expenses, long-term care, or other costs that may arise. These benefits are designed to help policyholders maintain their standard of living, even if they are unable to work due to a health issue.
Having coverage that protects your ability to make money – so that you don’t have to liquidate your savings – is the foundation of a good financial plan.
Protect Your Finances in Event of an Illness
If you were to become ill and needed access to cash to be able to pay for treatment, many of us would have to turn to savings or investments to fund it. However, if you have Critical Illness Insurance, you can keep your savings where they are.
If you have Critical Illness Insurance and are diagnosed with a covered illness, you will generally receive a lump sum payment from your insurance company. The payment can be used to help cover medical expenses, ongoing care costs, or any other expenses that may arise due to the illness.
It’s up to you to decide how to use the payment – but as we mentioned above, having that payment to replace your income is crucial to being able to leave your savings and investments alone until you’re ready to withdraw them for retirement.
By adding living benefits to your financial security planning, you can have peace of mind knowing that you have a financial safety net in case they experience a serious illness or injury. It’s important to note that the availability and specific terms of living benefits can vary between policies and insurance providers, so it’s important to review your policy and speak with your financial advisor to fully understand your coverage.
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