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There are a lot of different life insurance options in Utah. Most life insurance policies in Utah are basically the same. But, there are a few that offer living benefits. Living benefits, are benefits that you can actually use while you’re alive. Don’t get me wrong, the most important thing about a life insurance policy is the death benefit, but it is nice to have some benefits that you can actually use while you’re alive.
Some living benefits of life insurance policies are riders that are attached to the policy. Some are member benefits that you get free just because you are an owner of a policy with a particular company. Some riders cost extra and some are free. Here is a list of some of the living benefits that you can get with your life insurance policy in Utah.
Accelerated Death Benefit
An accelerated death benefit is a benefit where you can take a portion of your life insurance death benefit before you actually die. To be able to do this, you must be diagnosed with a chronic, critical or terminal illness.
Here’s how it works. Let’s say you have a $500,000 policy and you get diagnosed with terminal cancer. You could take a portion, in most cases up to 75% of the death benefit, as an accelerated payment. Then when you die, whatever portion you have already taken would be reduced from the death benefit. This benefit is usually included at no extra cost.
Disability Income Rider
The disability income rider provides an income benefit if you were to become totally disabled, as per the policy contract. There are many moving parts to a disability income rider but to keep it easy to understand, the policy will pay you a specific amount of money each month while you are disabled. This rider will cost more money per month, but if you don’t have any other long term disability insurance, it’s definitely something to consider.
Children’s term rider
Although this isn’t necessarily a living benefit, it is a nice rider to add if you want coverage for your kids. This rider covers your kids heaven forbid if they were to die. It is basically a life insurance on the kids. It is fairly inexpensive and usually covers all of your kids for one price. On most policies for example, if you had a children’s term rider for $15,000 on the kids, it would cost about $5-10/month depending on the company. It wouldn’t matter if you had one kid on the rider or 5, the price would be the same.
Family Health Benefit
A family health benefit covers you and your family in a catastrophic event and will help pay for things like hospital stays, ambulances, and emergency rooms. The amount that it would cover will vary between policies. This benefit is included for free.
Scholarships
Some life insurance policies in Utah offer scholarships to you, your kids, and even grandkids as a living benefit. This is an awesome benefit as the cost of college is so expensive these days. I know this benefit is awesome because I have personally seen some of my client’s grandkids get this scholarship. This benefit is included for free.
Legal Help
Some life insurance policies in Utah offer legal help as a member benefit. This would include things like, free legal advice, a free will, and other legal benefits at reduced rates. This benefit is included for free.
Family Events
This benefit is really cool. In Utah, we are all about families. Going out to family events are super fun, but can be expensive sometime. Some life insurance policies in Utah offer free family events. Things like professional sporting events, amusement parks, museums, water parks, and the list goes on.
I personally have a policy that has these events for free. I have 4 kids so events can be pricey. We’ve gone to the Polar Express in Heber, Boondocks in Draper, and a few others. It’s nice to actually get something out of your life insurance policy while you’re alive! This benefit is included for free.
Discounts on Dental, Vision, Hearing and other medical procedures
Some life insurance policies in Utah offer you a membership discount service where you can get significant discounts on select services. I’ve used mine at my dentist and it saves me a bunch of money every time. It can also save you at select stores and restaurants among other things. This benefit is included for free.
When we think about life insurance, we only think about dying and what will be left to our loved ones. But, there are some policies that offer a wide variety of benefits that you can take advantage of while you are living. Having life insurance to protect your family is so important, and having nice benefits while you’re alive is just icing on the cake.
Caution. Don’t buy a life insurance policy just because of the living benefits. Make sure you are getting a good price on your coverage as well. For example, with my personal policy, it just so happened that it was the best priced at my age and had all the living benefits as well. So it was a no-brainer.
There are a lot of companies that offer life insurance in Utah with living benefits. We can run the numbers for you and tell you whether it’s worth going with a policy with living benefits or not. Give us a call and let’s go over the options.