Using Term Life Insurance to Protect Against Injury or Illness

Most people are worried about the potential cost of long term care (LTC). Statistics show that more than 40% of us will require it at some point in our lives. And most health insurance plans don’t cover these extraordinary costs. They are considered “palliative” not curative and are excluded from most health plans. For example, lets say a spouse is diagnosed with dementia. They will require years of care and support that costs $100,000 per year. Where will these resources come from?

One option is Long Term Care insurance. We offer some excellent LTC insurance plans BUT for many people the premium costs after age 40 become prohibitive. A great alternative is having a term life insurance policy that also pays out for injuries or illnesses suffered by the insured. Only certain insurance companies offer this “living benefit” option, and we can match you with the best of these term policies.

How do they work? Depending on the death benefit you choose, they provide that in the event of either a “mild”, “moderate” or “severe” injury they will payout a set portion of the policy as a lump sum. For example, if you have one of the plans we offer and have a $500,000 death benefit, the policy will pay you $200,000 for a “mild injury or illness”, $350,000 for a “moderate injury or illness” or $425,000 for a “severe injury or illness”. The requirements for accessing these lump sums is made simple: Provide a letter from your treating physician indicating that you are suffering from either a “mild” “moderate” or “severe” injury or illness.

In many ways these living benefits are better than a LTC policy because you do not have to prove your LTC expenses. The money can be used to cover not just LTC but wage losses, college tuitions, mortgages, or any other expense you have. No proof of ongoing disability is required. The lump sum is simply paid out.

The best part about these term life policies is their cost. They can be purchased at rates far less than LTC policies would charge you for the same benefit. Call us to find out more and apply.