Today, the world of insurance has expanded to also provide benefits while the policy holders are alive – a living benefit. As opposed to life insurance where the benefit is only realized when the policy holder dies. Living benefit plans are insurance policies that provide financial benefits to survivors who face issues such as illness, accidents, aging and dependency. Living benefits insurance products such as critical illness insurance and long term care insurance can help clients prepare for the possibility of getting ill. Critical illness insurance provides a lump sum payment when a specific condition is diagnosed. The money can then be used for any purpose. Such as, hiring a caregiver, paying debts, or paying for expenses not covered under government health care. There are many conditions that may be covered under a critical illness policy but the most common are heart attacks, strokes, and cancer. Long term care insurance pays a daily, weekly, or monthly sum for medical or custodial care received at home if you are unable to carry out some of the common activities of daily living. The benefit may also be paid for care received in a hospital or a nursing care facility. With growing pressure from an aging population, the health care system cannot handle the increasing financial burden. The best time to ensure your future well being is now. At the point you experience a loss of independent existence and healthcare costs must be paid, it’s likely too late to obtain financial help. Inevitably, the savings you have accumulated over your lifetime could be rapidly depleted, until perhaps it is entirely gone. Good planning today will determine the quality of your future!
