There is life insurance that will pay you benefits when you are living!
Known as Living Benefits (or the technically correct term accelerated death benefits) if you are diagnosed terminally ill (think stage four cancer with the doc saying you have12-24 months to live); critically ill (heart attack, stroke, cancer); chronically ill (need help dressing, bathing, pooping) the insurance policy will pay you a major portion of the death benefit before you die. And when you die the remainder (minus a small fee) will go to your beneficiary.
Living Benefits are a great plan b for married cops, cops with kids and single cops – read on single cop and learn how you can benefit by insuring yourself.
Every Living Benefits insurance company has a slightly different twist to their benefits, and this is where someone in your corner who understands the blue will help you find the best solution.
TERMINAL ILLNESS – Doc says your going to die soon
Imagine you are diagnosed with stage four cancer. Doc says you have 12 months left. Bad news. But with your Living Benefits you have access to a majority of your death benefit.
Your big HMO will not allow experimental cancer treatment and you find a physician group in Amsterdam with success treating your type of cancer. Living Benefits is now the money solution to fly to Amsterdam, pay for treatment and have a better fighting chance to live. Or if your condition isn’t fixable, how about an amazing bucket trip. Or take care of the bills, invest some of the money into a guaranteed income stream for the family and ride out your days knowing your family has financial security. Plus, whatever you spend now your spouse’s new friend won’t have access to.
These solutions are not available with regular Life “Death” Insurance.
CRITICALLY ILL – Heart attack, cancer, stroke, major organ transplant, ALS
As a cop you statistically are more likely to have a heart attack at a younger age than the average citizen. Cancer rates are higher for you too. So, what happens when you have one of these critically ill incidents.
On a positive note in California Cancer and Heart Attacks are considered a presumptive workers comp injury/claim per the Government Code for Peace Officers. In the world of Unicorns and Rainbows, your agency will complete all workers comp paperwork and accept the claim immediately (this more likely will happen when you experience a heart attack on duty). You will have a one-year full pay salary benefit know as 4850 time and an additional year of 2/3 pay. This time is for your treatment and recovery without too much financial worry.
Reality is the agency will ignore the paperwork you completed from you hospital bedside; your personal health insurance will stop paying medical bills because they know it’s a work comp issue; you will have to use all of your own personal time off; and suddenly your claim is accepted and you are medically retired at 50% of pay almost overnight. Can stuff like this happen? Yes, I’ve seen all these different components happen to different cops over my career.
With Living Benefits you will receive a payout from your insurance if you are critically ill. Money that can be used to keep the family expenses addressed while waiting for the claim to be accepted. And if you are medically retired, you have access to funds to pay down debt or secure an ongoing income stream. Options not available with regular Life “Death” Insurance.
CHRONICALLY ILL – unable to perform two of the six daily life functions without help
Chronically ill means your medical condition prevents you from carrying out two of the six activities of daily living or you are cognitively impaired. The activities of daily living are bathing, continence, dressing, eating, toileting and transferring.
Having assistance costs money. With Living Benefits you will receive a payout from your insurance. An option not available with regular Life “Death” Insurance.
Using the same copper from the Life “Death” Insurance blog post (35 year old (dob 4/1/84) male cop in good health/BMI/qualifies for “preferred rating”) a $2 million dollar 20 year term policy with American National is $1120 annually.
That is only about $80 difference annually from traditional Life “Death” Insurance.
Or about 25 cents per day.
For just a few extra cents a day imagine the relief you will feel knowing you have access to financial security for your family; alternative health treatment; or an awesome blow out time before your number is up.