Living Benefits Life Insurance: Pros and Cons

Pros:

1. You can buy life insurance with living benefits without an agent or broker.

2. You can get a lower premium than you would if you bought a traditional policy.

3. You can buy life insurance without medical exams.

4. You can choose to have your policy pay out immediately upon your death or at a later date, which may be beneficial if you are in poor health or have a terminal illness.

5. You can choose the level of coverage you want.

6. If you buy a whole life policy, you can borrow against the cash value of the policy. This means that you can withdraw money from the policy when needed without paying any taxes or penalties.

7. You can make changes to your policy such as changing your beneficiary or increasing your coverage without having to go through the underwriting process again.

8. The premiums you pay are tax deductible.

9. You can transfer your policy to your spouse, children, or other beneficiaries without going through the underwriting process again or paying a surrender charge.

10. Your policy will pay a death benefit even if you die before you reach retirement age.

11. You can use the money in your policy to help pay for college expenses, vacations, weddings, home improvements, and other personal needs.

12. You can get a loan from your policy if you run into financial problems.

13. You can use the money from your policy to start a business or invest in real estate.

14. If you buy a universal life policy, you can borrow up to 75% of the cash value of your policy.

15. If you are buying term life insurance, you can convert it to a permanent policy without having to go through the process again.

16. You can use the money you receive from your policy to pay off debts.

17. You can buy life insurance from a national life company instead of a local insurance company.

Cons:

1. If you buy life insurance with living benefits from a local insurance company, you won’t be able to take advantage of the above advantages.

  • 2. You may not be able to get the best possible rate from a local insurance company.
  • f you buy life insurance with living
  • benefits from a local insurance company,
  • you may not be able to take advantage of
  • the above advantages.

3. You may have to pay more for the living benefits feature.

4. You may have to pay higher commissions to an insurance agent or broker.

5. You may have to pay extra fees for services like a rider or mortgage loan.

6. You may have to pay for the living benefits feature yourself rather than getting it free.

7. You may have to pay a surrender charge if you change your policy.