While life insurance is designed to benefit your loved ones after you pass away, it also helps them and you before that time comes by way of something known as living benefits.
Living benefit options for term life include:
Accelerated death benefits: This benefit pays out a portion of your term life policy if you ever face a terminal illness and gives you needed cash to cover any medical, debt, or other expenses. A variation on this option is called a critical illness rider that lets you access your death benefit if a specific ailment or disease afflicts you.
Return of premium: This benefit provides for all the premiums you paid during the term to be returned to you so long as you don’t pass away during the term.
Disability waiver of premium: This benefit lets you skip your premium payments in the event you suffer from a long-term disability lasting six months or more. While not a true cash benefit, it’s still a valuable option.
Living benefit options for permanent life include:
Death benefits: This insurance offers similar benefits as term life insurance but includes an additional ability to accumulate cash value on a tax-deferred basis.
Cash value withdrawal: This benefit provides you access to a portion of the cash value of your permanent life policy. There are tax implications to be aware of depending on the amount withdrawn, and the amount withdrawn will be subtracted from the policy’s death benefit if not repaid.
Policy loan: You’ll be charged interest if you take out a loan against your permanent life policy, but it’s usually lower than the interest charged by more traditional lenders.
Long-term care benefits: Adding a long-term care benefit to your permanent life policy lets you tap into the death benefit to cover long-term care expenses that your health insurance doesn’t cover. It’s a valuable living benefit to have when you consider that 70% of people turning 65 today will need some form of long-term care in their lives.
There’s a need for life insurance at any age and stage of life, but it’s important to select the right policy. Call us at (540) 720-5656, and we can discuss the options available and the best selection for your situation.
Amy Anderson joined the ILG Financial team in 2023 as the client relations coordinator. Her responsibilities include scheduling of appointments, annual check-up notifications, and annuity and required minimum distribution assistance. She is a graduate of Harding University with a degree in Computer Information Systems. Amy and her husband have two children and she enjoys reading, crocheting, music and spending time with her family.
Chase Lopez joined the ILG Financial team in 2020 as an advisor. Chase is a 2016 James Madison University graduate with a degree in management. Chase has been trained under the tutelage of Dave Lopez, who is not only the founder and managing member of ILG Financial, but also is Chase’s uncle and godfather. He also enjoys working alongside his cousin, Megan, who is Dave’s daughter. Chase, as a fiduciary, believes in putting his clients interests first, and building out plans for his clients where they can have a happy and fruitful retirement. He married his beautiful wife in February 2022 and both use most of their free time chasing around their little pup, Aurora.
Jessica Carson joined the ILG Financial team in 2018 as an agent. Jessica and her husband have four children, two dogs, 3 barn cats, 5 chickens, and three parakeets. She indeed loves her children and pets! When not at work, Jessica enjoys playing the piano and cello as well as traveling and spending time outside with her family, hiking, fishing, and boating.
Terri Center joined the ILG Financial team in 2019 as client services manager. She handles client records, application processing, and gathering information to provide a professional and friendly experience with all of our clients. Terri is a graduate of Oakland University. She is married and has two children. She enjoys hiking, family time, and puzzle challenging video games. She also likes to share her creativity in her canvas paintings and sewing projects.
Megan Jones joined the ILG Financial team in 2020 as marketing director. Megan and her husband live in Fredericksburg, VA with their German Short Haired Pointer, Gus. Megan is a graduate of Longwood University and holds a degree in communications. Megan is the oldest of Dave Lopez’s three children and not only enjoys working alongside her father, but also with her cousin, Chase, who joined the ILG Financial team in 2020 as an advisor. When not at work, Megan enjoys sitting on the back porch with family and friends enjoying food and music.