You’ll want to check your policy to see how much the carrier will payout. In general, a living benefits rider will pay you somewhere between 24% and 100% of the policy’s total death benefit. But several of these also involve a fixed dollar limit.
Say, for example, your policy lets you take 50% in an accelerated death benefit. In that case, your family will still get the remaining 50% when you pass away. After you use the living benefit, the insurance company should update your policy to show the remaining death benefit. Then, the revised policy stays active until you die — so long as you keep paying premiums. Your premiums will be modified to fit the new death benefit amount.
Every company and policy has its qualifying definitions and payout variables for living benefits. Let us help. An agent at FinServe Financial with Black Swan Insurance Group can discuss your options with you and determine the kind of coverage that’s best for you and your loved ones.
Three main events trigger living benefits, and each will allow you to accelerate money from your policy amount while you’re still alive.
If you’d like help in deciding whether taking a living benefit is in the best interest of your family, call us at (801) 427-0866