Is there a life insurance policy that pays me if I get sick?
If you like the idea of a permanent policy, many of my clients love our universal life policy with living benefits.
Breaking it down, it is a permanent policy that has:
a flexible premium
an increasing death benefit
an increasing cash value
and living benefits can be added for no extra cost
If you are to get sick, you can draw from your cash value and activate your living benefits to draw from your death benefit.
Let’s say John is a 32-year-old male who takes out a $100,000 policy for himself and $25,000 on his 3 children as a rider on his policy. His policy total is $75/mo. John pays on his policy for the next 43 years, making him 75 when he finds out he has a critical illness: ESRD (End Stage Renal Disease). John knows this is going to be a very expensive ongoing treatment, but thankfully his universal life policy with living benefits is there to help him.
Not only can he draw out funds from his $75,000 in cash value he's built up over the last 43 years, but he can also make a claim on the Death Benefit of $175,000. He will be paid out a percentage of this death benefit however he sees fit. John can determine how the money is used: it can pay for care or treatment that may not be covered by his health insurance plan, replace income lost as a result of his illness, provide for in-home care or facility needs, or bring the entire family together for a reunion. In essence, he gets to draw money from two different sources, and it makes the burden of having this critical condition easier to handle.