Life Insurance with Living Benefits

Most people think of life insurance as protection for loved ones after death. But modern policies can also support you during life’s biggest health challenges. If you’re diagnosed with a terminal, chronic, or critical illness, certain policies let you accelerate your death benefit and use the money while you’re alive.

Business Owner Perspective

You’re balancing growth, risk, and succession planning. Living benefits provide a critical safety net that protects both your personal financial security and your business continuity when health crises strike. This isn’t just personal protection—it’s strategic business risk management.

The Reality of Health Crises

• 40 seconds - A stroke occurs every 40 seconds in the U.S.
• 6 in 10 - Americans live with at least one chronic disease
• 1.9M+ - New cancer cases expected in 2023
• 6.5M+ - Americans live with Alzheimer’s

How Living Benefits Support Business Owners

Living Benefits Can Help Pay For:

• Business operational expenses during recovery
• Household bills and family expenses
• Nursing home or specialized care
• Home modifications for accessibility
• Quality of life improvements during illness
• Key person replacement costs

Important Considerations

• Accelerated Benefits Riders (ABRs) are optional, no-additional-cost add-ons
• Payment of benefits reduces your cash value and death benefit
• May impact eligibility for public assistance programs
• Benefits may be taxable—consult your tax advisor

Business Owner Use Cases

Owner-in-Crisis

Scenario: Executive diagnosed with cancer needs immediate funds for treatment while maintaining business operations

Living Benefits Solution: Access death benefit early to cover medical costs and maintain business cash flow

Key Person Protection

Scenario: Critical team member suffers stroke, creating both personal and business financial strain

Living Benefits Solution: Living benefits provide personal financial support while business continuity plans activate

Family Business Continuity

Scenario: Family business owner develops chronic illness requiring long-term care

Living Benefits Solution: Accelerated benefits fund care while preserving business assets for succession

Triple Bottom-Line Business Impact

1. Cash Flow Management

Immediate access to capital during health crises prevents disruption to business operations and personal finances.

2. Wealth Preservation

Protects accumulated business and personal wealth from being depleted by medical expenses.

3. Succession Continuity

Ensures business succession plans remain intact even when owners face serious health challenges.

Types of Living Benefits

Terminal Illness Rider

Access a portion of the death benefit if diagnosed with a terminal illness (typically 12-24 months to live).

Critical Illness Rider

Provides a lump sum payment upon diagnosis of specific critical illnesses (heart attack, stroke, cancer, etc.).

Chronic Illness Rider

Pays benefits if you become chronically ill and unable to perform activities of daily living.

Long-Term Care Rider

Covers costs of long-term care services, nursing home care, or home health care.

Integration with Business Strategy

Living benefits should be integrated into your overall business protection strategy:

• Coordinate with key-person insurance
• Align with buy-sell agreements
• Support business continuity planning
• Protect against operational disruption

Ready to Protect Your Business and Family?

Schedule a consultation to explore how living benefits can be integrated into your overall business protection strategy.

Disclaimer

This article is for educational purposes only and does not constitute financial, investment, or insurance advice. Consult licensed insurance professionals to understand how living benefits work with your specific policy and circumstances.