What are Living Benefits?

What is Living Benefits?

Living Benefit is a term that is often connected with Death Benefit in Life Insurance policies. Just as the name suggests, while Death Benefit is the money given to the beneficiaries, Living Benefit is something that the insured can receive and use if they end up getting sick. In other words, Living Benefit is something that you can use while you are still alive.

While life insurance is a key component to any financial plan, more and more people nowadays need the help of living benefits to help them stay financially afloat in the situation where they get sick. Now only has modern medical technology improved the survival rates over the less 100 years, the average life expectancy also has increased by over 30 years. Yet, even though more and more people can survive a medical crisis, the quality of health care does not come cheap.

The Cost of Surviving

Typically in the United States, the average cost surrounding a cancer diagnosis average $146,000 per patient. This includes not only surgery or chemotherapy or radiation therapy, but also medication for a long period recovering process. Over 65% of cancer related expenses are indirect, not covered by traditional health insurance.

Others rely Medicare to cover any long term care expenses, but only to realize that Medicare doesn’t cover everything. Not only does it have high requirements, but it also only fully covers from Day 1-20, and after Day 101, the patient has to fully pay for all the expenses.

The Cost of Care

Typically when it comes to the cost of care for long term care, there are 4 types. First we have the Home Health Care, where the patient receives help at the comfort of their home so that service aid can do run errands or provide daily non-medical related assistance. The average monthly cost is about $4290 to $4385. Second we have Adult Day Health Care and Assisted Living, where patients are sent to the facility or community during the day to receive health/therapeutic services and social activities. The average monthly cost for Adult Day Health Care is $1625. Assisted Living Facility, on the other hand, provides personal care and health services for people who may need assistance with Activities of Daily Living. The average monthly cost can run up to $4051. Last but not least, we have nursing home facility where skilled nursing care is provided for people who may need a higher level of supervision and care than in an assisted living facility. The average monthly cost for semi-private and private room is between $7513 to $8517 respectively.

Everyone needs to consider living benefits

With rising cost of health care and lack of financial resources when one gets to a point where long term care is needed, would a lump sum payment of $50k to $100K or a period monthly payment of $2k to $3K at the time of care made a positive different for the family?

Here at TransGlobal, we can provide more information and custom-design a plan that will meet you and your family’s need.

By TransGlobal Sales support-Irvine May，2020
Writer： Walt Chen