Your Life Insurance Money

By: radames
Posted April 8, 2017
Posted in LIFE

Why Can’t You Get Your Life Insurance Money?

For more than a 100 years, people have had to die for someone to collect money from their life insurance policy.

Today, you can have the death benefit paid directly to you, during your life. That’s right; you no longer have to die to benefit from your life insurance policy.

Fortunately for you, modern times have also caught up with the life insurance business and the policies they create.

So why is your life insurance company holding on to your money?

The simple answer is that not all life insurance policies are created equally. And you may be holding on to a traditional life insurance policy that pays your beneficiaries when you die. This is what life insurance is supposed to do.

Modern advancements in life insurance have taken benefits to a higher level of protection. Like traditional life insurance, policies with living benefits can still pay a death benefit to your family when you die. However, what sets these policies apart is that they can also make cash payments to you, without having to die first.

If there is one thing that some people dislike about life insurance is the idea of paying for something that they won’t live to benefit from. Now these people have no excuse.

They can provide valuable financial protection for their loved ones if they die unexpectedly. But now, they can also get access to the same policy death benefit to use as they wish.

The use of this money is unrestricted. This means that you can use the money for any purpose without having to account for how the money is spent. You can use your own life insurance money for things like:

Mortgage payments and household expenses

Pay or reduce debts, such as car loans, credit cards and student loans

Get exceptional or experimental medical treatment that is not covered by health insurance

Set up trust funds to control and direct how your money is spent

Live Better with Living Benefits

The requirement to access all or part of your death benefit, while living, can be satisfied by experiencing a medical condition or impairment.

There are 3 distinct medical categories that qualify for accelerated living benefits of life insurance. These are:

Critical illness and injury,

Chronic illness, and

Terminal illness

Critical illness and Critical injury, what is it?

According to the companies that offer these benefits, critical Illness can include:

Heart Attack



End Stage Renal Failure

Major Organ Transplant

ALS (Lou Gehrig’s disease)


Paralysis of two or more limbs

Aorta Graft Surgery

Aplastic Anemia

Cystic Fibrosis

Heart Valve Replacement

Motor Neuron Disease

Sudden Cardiac Arrest

Critical Injury includes:



Severe Burns

Traumatic Brain Injury

Be sure to compare the differences between companies as each will have its own list of critical illness and their meanings.

If you choose to tap into your policy’s critical illness, critical injury benefit, the amount you receive will be based on several factors. These factors are:

· The size of your policy’s death benefit

· The severity of the critical illness and the impact on life expectancy

· An interest rate used in the accelerated benefit calculation- the amount of the death benefit is made available on a discounted basis

· Another method used to calculate benefits takes into account the severity of the illness- from minor to life threatening. Check with the particular policy in question and ask an agent or company for the method that best suits your needs.

· Administrative fees may apply

Basically, you get more money due to a severe condition that shortens your life expectancy. If you are expected to live longer, the benefit amount will be less.

How much death benefit can you get from a policy under the critical illness benefit?

· The full amount of available death benefit

· A portion of the death benefit and leave a portion intact for your family

· No amount – leaving the entire death benefit for your beneficiaries

Tapping into the Chronic Illness Benefit

Chronic illness means you are unable to perform two out of six “activities of daily living” or you are cognitively impaired.

The Activities of Daily Living are:

1. Bathing

2. Continence

3. Dressing

4. Eating

5. Toileting

6. Transferring

Essentially, these are the things that enable you to take care of yourself.

In order to meet the chronically ill requirement, you must be unable to perform at least two of these activities without assistance from another person for a period of at least 90 days.

Should you need this benefit, you can:

Receive cash payments every year on a portion of the death benefit.

You also have the option to leave the death benefit in place for your beneficiaries.

Terminal Illness

In general, this means you have been diagnosed with a terminal illness that will result in death within 12 or 24 months.

A policy that gives more time (24 months versus 12 months) for a medical condition to result in death, is more favorable to you.

How much death benefit can you get from a policy under the terminal illness benefit?

· The full amount of available death benefit

· A portion of the death benefit and leave a portion intact for your family

· No amount – leaving the entire death benefit for your beneficiaries

You no longer need to leave your life insurance money at the table. Take your money and spend it as you wish.

Now that you know about the alternative payouts for life insurance, you need to take action. The best part is that these policies are competitively priced and are often a better deal than the traditional life insurance that only pays when you die.

So what are you waiting for?

Get in contact with an agent or company that can show you if this is right for you. You have nothing to lose by looking into it, but you can be missing out by not taking the time to find out.

And it’s easy to go from here.

Just enter your email below to get started.

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