What happens if you don’t die…but a serious illness suddenly stops your paycheck?
That is the question traditional life insurance does not always answer.
Dave Ramsey has long made a strong case for affordable term life insurance. His current guidance recommends level term coverage generally equal to 10–12 times your annual income, typically for 15–20 years. The goal is simple: protect your family financially if you die while they still depend on your income.
We agree with the foundation of that advice.
But today, some term life insurance policies offer another layer of protection worth considering: Living Benefits.
What If You Get Sick but Don’t Die?
Imagine being diagnosed with cancer, suffering a major heart attack or stroke, or developing a serious chronic illness. You survive, which is obviously what everyone hopes for.
But now another problem begins…
Your paycheck may be reduced or stop altogether. The mortgage is still due. Groceries, utilities, car payments and everyday expenses continue. Health insurance may help pay doctors and hospitals, but it does not replace the income your family depends on.
This is where term life insurance with Living Benefits can be different from traditional death-benefit-only coverage.
Depending on the policy, Living Benefits or accelerated benefit riders may allow you to access a portion of your life insurance death benefit while you are still alive after a qualifying critical, chronic or terminal illness.
In other words, it can be life insurance you don’t necessarily have to die to use.
Living Benefits Can Help Protect the Financial Plan You’re Building
Think about everything you have worked to protect:
- Your emergency fund.
- Your retirement accounts
- Your home.
- Your savings.
- Your family’s monthly budget.
A serious illness can put pressure on all of them at once.
If your policy includes qualifying Living Benefits, money accessed from the policy can help provide additional financial flexibility during that crisis. Depending on the policy and benefit, those funds can potentially help with your mortgage, household expenses, medical costs not covered by health insurance, travel for treatment or lost income while you recover.
The important distinction is this: Living Benefits do not replace health insurance or disability insurance. They provide another potential financial resource when a qualifying event occurs.
So, Is Dave Ramsey Wrong About Term Life Insurance?
We don’t think so.
Affordable term life insurance can be an excellent foundation for protecting a family, particularly during the years when children, a mortgage and other financial obligations make income replacement critical.
The better question is:
If two term policies provide the death benefit your family needs, should you also compare what each policy can do for you while you’re alive?
We believe the answer is “Yes”…
Living Benefits vary significantly from one insurance company and policy to another. Critical illness, chronic illness and terminal illness definitions can differ, as can benefit amounts, costs and qualification requirements.
That makes comparing the actual policy provisions, not simply the premium, extremely important.
Looking for Living Benefits Life Insurance in Upstate South Carolina?
At the Shanley Insurance Agency, we have been helping families across Upstate South Carolina since 1999.
As an independent insurance agency, we can help you compare term life insurance with Living Benefits from multiple insurance companies rather than limiting you to one carrier.
We serve families throughout Pickens County, Easley, Clemson, Seneca, Anderson, Greenville and surrounding Upstate SC communities.
Already have life insurance?
That is a good place to start. Let us help you determine whether your current policy includes benefits you may be able to use while you’re alive and compare it with today’s Living Benefits options.
Don’t just ask, “What happens to my family if I die?”
Ask the second question too:
“What happens to us financially if I get seriously sick and survive?”
Call the Shanley Insurance Agency at (864) 868-5194 to schedule a Living Benefits Life Insurance review. Visit our website at www.shanleyscagency.com
Local. Independent. Trusted in Upstate SC since 1999.
Living Benefits and accelerated benefit riders vary by insurance carrier and policy. Eligibility, covered conditions, benefit amounts and policy costs are subject to the terms of the insurance contract and underwriting. Accelerating a death benefit will generally reduce the amount remaining for beneficiaries. Tax treatment can vary based on individual circumstances. Shanley Insurance Agency is not affiliated with Dave Ramsey or Ramsey Solutions.