What Is Life Insurance With Living Benefits?


Every day people in the Long Beach, CA area are diagnosed with cancer or have heart attacks.

And every day those same people go bankrupt trying to survive.

Now, a life insurance with living benefits policy will give you the life insurance coverage you need.

PLUS put money in your pocket while you are alive, if diagnosed with a qualifying medical illness, injury, or disease. 

This money will eliminate the financial stress and allow you to focus on treatment instead of worrying about medical bills.


How life insurance with living benefits works

main insurance companies that offer life insurance with living benefits

Ok, let’s break it down. There about two thousand insurance companies that sell life insurance in the US.

Now, there are four main companies that focus on life insurance with living benefits.

And there are two of the four companies that have all three triggers here in California.

National Life Group LSW and AIG are the only two companies here in CA that have all three Critical, Chronic, and Terminal Illness triggers.

Now, the more triggers your policy has, the more ways you can access the money while you are alive.

There are three main triggers that will allow you to access the death benefit while alive:

  1. Critical Illness and Injury
  2. Chronic Illness
  3. Terminal Illness

Our image below uses National Life Group’s definitions and requirements, as they are our most popular life insurance with living benefits company.

Qualifying critical illness and critical injuries

qualifying triggers in a life insurance with living benefits policy

There are a total of 13 critical illnesses and 4 critical injuries (8 illness, 4 injuries in CA)

When a client is diagnosed with one of the above illnesses, they will qualify and be able to access a portion of their death benefit. 

The amount of the death benefit that can be accelerated is based on a few factors:

  • how long the policy has been inforce
  • the current age of onset
  • coverage amount
  • and a few other factors

Now, one of the reasons that National Life Group is so popular among our clients is the fact that they advertise their payout formula.

With their illustration software, we can actually show a client what amount would be accelerated, based on the specific illness or disease and at what age.


Life insurance with living benefits client example

Terry, a 35-year-old male with an Elite health rating, purchased a temporary life insurance with living benefits policy with:

  • $500,000 in coverage
  • $20 a month
  • with 10 years of level premiums

If Terry were to be diagnosed with one of the qualifying critical illnesses, he would receive the payout amount based on his age and the severity.

Using age 37 as an example, if he were to have a life-threatening cancer diagnosis, he would receive $407,000 in a lump sum payment. 

life insurance with living benefits critical illness payout amount

Terry can use that money however he wants:

  • replace his income
  • pay for what health insurance doesn’t cover
  • or more importantly, get the best care

The above age examples are real projected numbers that would be paid to Terry.

All benefits of this 10 year plan here in CA start from day 31 of the policy being inforce to the end of the 10th year.


What qualifies as a chronic illness?

With Alzheimer’s disease and dementia running rampant among people ages 65 to 85, the need for savings is almost a must-have.

Especially since the average cost of in-home care is roughly $6,000 a month.

Now, to qualify, you can no longer perform or need substantial assistance with two out of the below six activities of daily living.

(Activities of Daily Living)

six activities of daily living qualification in a life insurance with living benefits policy

One of the main benefits is that the money is accelerated up front for the full year.

So, whatever the monthly benefit would be for that year, National Life Group would pay all 12 months up front for the year.

Whereas a long-term care policy would only reimburse you after you paid for care first. 

Take a look below at Terry’s payout amounts if he were to qualify for the chronic illness benefit.

chronic illness payout from a life insurance with living benefits policy


The above illustration shows Terry’s monthly payout amount if he were diagnosed with a qualifying chronic illness.

The monthly amount would then be advanced for the full 12 months.

Again, the highlight is that this money is advanced; no required receipts or waiting for reimbursements from the insurance company.


How to qualify for a terminal illness benefit?

terminal illness payout from a life insurance with living benefits policy

The last trigger in a life insurance with living benefits policy is very simple and straightforward.

If a doctor says you have less than 24 months to live, no matter the reason, you will be able to accelerate up to 100% or $1,500,000 of your coverage amount.

For Terry, the below illustration shows an example of what his benefit would be at age 40.

This money can be used to beat whatever disease is trying to kill him, or to have the best 24 months of his life!

Again, this provides Terry with so many options and can truly eliminate any financial stress.


So in conclusion, Terry pays $20 a month and has a $500,000 life insurance with living benefits policy.

If he dies prematurely, his family would get $500,000 as a death benefit.

If Terry were to be diagnosed with one of the qualifying critical, chronic, or terminal illnesses, he would receive money up front, while he is alive.

He can use that money to replace his income, he can pay for health insurance costs, and most importantly, he can use that money to get the best care.

All of this for only $20 a month.

Now, if you don’t like the idea of only having coverage for 10 years.

Then our permanent option would be more ideal.

And actually, the permanent option is our most popular plan.

It is the most popular plan because it provides living benefits coverage during your highest risk years, age 60 and up.

Also, you can enjoy a cash accumulation aspect that allows you to access cash in your retirement years.

In addition, you can say goodbye to needles as the permanent option does not require a traditional insurance exam. 

It can also approve your application in as little as seven days with an “EZ” underwriting process.

Now, before you get too excited about the permanent option we have to tell you that it’s not right for everyone.

We must set up a free insurance review to go over your goals and see which plan would be more ideal.

By clicking here you can visit our calendar page to set up your free 15-minute insurance review.

You can choose what day and time to be called.

During the introductory phone call, we can answer any questions you might have and run you a few quotes. 

If you are local here in the Long Beach, CA area come by and say hi. 

We will do whatever it takes to answer any questions you have and make this the easiest process ever.

If you have a question, please leave a comment below and I will be sure to answer ASAP.

Thank you


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