Living Benefits

September 2012 Living Edge

LOOKING BACK

: Revisiting the first Living Edge article appearing in May 2010

… and

it is as relevant today as it was nearly 2 ½ years ago.

Most people purchase life insurance to provide a legacy of financial security at the time of their death. But

doesn’t it make sense for the benefits to extend and be available for the difficult times many have to face

while living, but dealing with a chronic, critical or terminal illness? In actuarial jargon the industry calls the

benefit an “Accelerated Death Benefit Rider.” Your client will more likely refer to it as a real world Living

Benefit.

Most of us are in this profession because of a sincere desire to help others in a manner that is both unique

and timely. Living Benefits is one of the reasons why our family of agents is so passionate about what we

do each and every day.

Allow me to explain with an all too common scenario. The insured has purchased a universal life or term

insurance policy from an Alliance representative. Months or years later, a chronic, critical or terminal illness

occurs, and money is needed for any number of reasons such as the necessity for special care or

expensive alternative treatment not covered by their health insurance; or to replace the income of the

insured or the family member who volunteers to stay home as caregiver; or perhaps to just fulfill the

insured’s living wish before the end of life.

In real life, families want to be able to provide for the needs of their grandparents, parents, or children who

became ill while they are living, and not stand by just waiting for the legacy of an insurance death benefit to

be paid. If along with the ageless tax advantages inherent in a life insurance contract, this

living feature was

better known or better explained, more people would buy life insurance for the “living benefits” than just the

death benefit. That is our mission!

The coverage’s proposed by the Alliance Group and the insurance company’s they represent offer living

benefits on virtually all the life products we represent, including most term contracts. Other insurance

carriers may offer it at a charge, often as much as double the premium of the basic policy.

The companies selected by The Alliance Group include the living benefits rider at no additional premium

cost to the insured, with no separate underwriting requirements.

That is what distinguishes the Alliance Group and our representatives from all others and helps build A

n

Alliance for Life

between our agents and their clients!By RICK DRAZIEN