A life insurance policy doesn’t just help families financially after a loved one dies. It can also be a lifesaver in many other ways. Find out why you don’t have to die to access your policy’s “death benefit.”
In the world of life insurance, you hear the term “death benefit” frequently. A death benefit is the amount of money that a life insurance policy pays out to a beneficiary when the insured individual dies, usually in a lump-sum payment.
But life insurance is not just about providing financial assistance to families when someone passes away. It can also provide badly-needed financial benefits to beneficiaries while they are still amongst the living.
Kelley’s story is a superb example of how a policy’s “living benefits” can truly be a godsend. A “living benefits” rider allows the policyholder to take a percentage of the policy’s death benefit right away, if the policyholder’s life expectancy takes a sudden turn for the worse.
Kelley Snead and her husband, Doak, live in Nashville. Both worked in the city’s hot country music industry and bonded over their mutual love of making music. After Kelley and Doak got married, their priorities changed, especially after their daughter, Emma, was born. Kelley became the chief breadwinner, while Doak became the stay-at-home spouse.
At some point, the family realized that they needed more life insurance. So not only did Kelley and Doak increase their coverage, but they made sure that added a “living benefits” rider to their existing policy. With Kelley starting a new career in real estate, and Doak staying home to raise their daughter, having the additional coverage just made sense.
Meanwhile, Kelley’s new career was taking off. Things were good. Until tragedy struck. Kelley was diagnosed with a drug-resistant form of Parkinson’s disease. This debilitating, degenerative neurological disease robbed her of the ability to work and take care of herself.
But fortunately for Kelley, her term life policy also had a “disability waiver of premium” feature, so she’ll never have to pay another premium. And since her diagnosis is terminal, the family has been able to access a percentage of the policy’s “living benefits” now, which has helped Kelley live a better quality of life.
Because of the living benefits rider in her policy, the Snead family has been able to stay in their home, while Emma was able to graduate from her neighborhood school.
This is what life insurance can do. It helps families live better lives by providing the financial support they need, when they need it the most. Life insurance can help keep families in their homes, pay bills, help send kids to college, and so much more.
In short, you really never know how valuable life insurance is…until you need it. For the Sneads, that was music to their ears.
To hear more about Kelley’s story, watch this video. Video courtesy of Life Happens.