life insurance

Unlocking Financial Security: The Power of Living Benefits Riders

December 20, 2023

Life insurance offers a financial safety net for loved ones, helping to provide for your family even after you’re gone. Yet, the power of life insurance extends beyond the final expenses. It can be a crucial support system in the face of terminal or chronic illness. When you augment your policy with living benefits riders, you safeguard against the financial strain of medical expenses when life takes an unexpected turn.

At 1891 Financial Life, we recognize your life involves more than just paperwork, extending empathy when you need it most. This article explores the power of living benefits riders and how you can tap into them to cover the costs of care, whether at home or in a long-term care facility.

The Need for Long-Term Care

The cost of long-term care, whether at home or in a nursing facility, can exceed $100,000 annually on average, according to Morningstar.

It's a sobering reality, especially when you learn that 70% of individuals turning 65 will develop a severe long-term care need in their lifetimes. Almost half will require some form of paid long-term care services, with 24% needing such care for more than two years and 15% spending more than two years in a nursing home.

By including living benefits riders in your insurance policy, you're not just preparing for the unexpected; you're ensuring that, even in the face of health issues, your loved ones can find much-needed support. These riders let you draw from your policy's benefits to address the financial burden that comes with long-term care needs, allowing you to focus on what truly matters — the well-being of your family.

Understanding Living Benefits Riders

At 1891 Financial Life, we understand that life's twists and turns can be emotionally and financially overwhelming. That's why we automatically include living benefits riders in our various policies, turning your insurance into a shield against the financial and emotional toll of health challenges.

Coverage options include:

  • Term Life Insurance with 10, 20, and 30-year level premium
  • Cash Value Whole Life Insurance products with Pay to Age 100, Pay to Age 75, Single Premium, and 10- or 20-Pay
  • Simplified Issue (SI) Whole Life with Pay to Age 100 and Single Premium

To qualify for these benefits, one of the following scenarios must apply:

  • You’ve been diagnosed with a terminal illness.
  • You’re battling a chronic illness.
  • You’ve been diagnosed with a medical condition specified in the rider.

Sharing your medical journey through documentation unlocks these benefits, providing financial aid and a helping hand during difficult times. The amount you can access depends on your policy terms and is capped at a percentage of benefits, up to $250,000.

Maximizing Your Insurance Potential

The value you place on your family is immeasurable, so it's crucial to tailor your coverage to its unique needs — recognizing that each family has its own story, aspirations, and challenges.

When you choose a policy that includes a living benefits rider, like the policies at 1891 Financial Life, you're extending a shield against the emotional toll of potential illness and long-term care needs. It's a gesture of foresight, promising that your family won't stand alone if you require ongoing medical care.

Contact us today to discuss your life insurance needs and discover how 1891 Financial Life can provide you with a personalized policy that gives you and your family the protection you need for greater peace of mind.

About 1891 Financial Life

At 1891 Financial Life we don’t just sell policies, we offer possibilities. We pride ourselves on giving back to the communities that we serve by providing quality and comprehensive insurance solutions. We are a not-for-profit life insurance Society, which means the sales from these financial service products help fund member benefits along with social, educational, and volunteer programs designed to respond to community needs.

Our portfolio is extensive, ranging from various life insurance policies to our annuities to support your financial needs no matter what stage of life you’re in.