The New Life Insurance: Benefits While Clients Are Still Living

  • Originally published March 30, 2017 , last updated February 26, 2020
  • Life, Accelerated Benefit Rider, ABR, Living Benefits

You’re likely familiar with some of the “S” words associated with clients getting money from their life insurance policy. There’s the “sad” way, with the death of the policy holder. There is also a “smart” way to get money out of a policy (loans or withdrawals), and a “stupid” way (surrendering the policy for cash). Today, I’m writing about a NEW “S” in life insurance – “sick.”

Life insurance can offer living benefits, for when your clients are alive but ill.  These come in the form of Accelerated Benefit Riders (ABRs), which allow a policy holder to accelerate a portion or even all of their benefit if they are diagnosed with a terminal illness, chronic illness or a critical illness like heart attack, cancer or stroke.

When faced with those rising medical costs, clients can be left with a financial hardship during an already difficult time. And, even though their life expectancy may be less than a year, the benefits in their life insurance can be off limits until they die. That’s what ABRs do – help unlock those funds.

With many carriers, living benefits can be added as a rider on the policy.  With some, the living benefits are built directly in to the basic policy with no charge, and a rider is not necessary.  There are also some very innovative solutions available in the form of long-term care / life hybrids, which provide an array of other benefits and options.

There are simple ways you can get your clients thinking about living benefits and ABRs. Ask them if they have the old life insurance or the new life insurance. Most think about life insurance for if they die too soon. Ask them to consider how they’ll pay for things if they live too long, while suffering with a chronic or critical illness. They shouldn’t have to die to use life insurance. This gives them options.

Want to learn more about ABRs and how they help clients? Here's your opportunity. Join me and other experts from SMS for our upcoming webinar — Demystifying Today's Living Benefits. It happens April 27 at 11:00 A.M. 

Need more information? Call the SMS Life team at 1-877-888-0166. We can review the extensive lineup of carriers and solutions to help your clients. Get appointed through SMS today, and offer the new life insurance.