5 Living Benefits Myths That Could Be Costing You Peace of Mind
Living benefits in life insurance are a powerful tool—but they’re often misunderstood. Misinformation can prevent people from using or even considering these features, which means missing out on real protection during difficult times. Here are five common myths about living benefits that could be costing you clarity, confidence, and peace of mind.
Myth 1: Living Benefits Are Only for the Elderly
Reality: Serious illnesses and accidents don’t only affect older adults. People in their 30s, 40s, and 50s often experience health events that qualify for living benefits, such as cancer, stroke, or chronic conditions. Younger adults who secure policies with living benefits early not only lock in lower premiums but also gain valuable protection while still in their prime earning years.
Myth 2: All Life Insurance Policies Include Living Benefits
Reality: Not every policy comes with living benefits. Some insurers offer them as built-in features, while others require you to add them as optional riders. It’s essential to ask before purchasing and review the details carefully to understand what’s covered—and what’s not.
Myth 3: You Can Only Use Living Benefits for Medical Bills
Reality: Living benefits payouts are unrestricted. Once you qualify, the funds can be used for anything—rent, mortgage, caregiving expenses, lost income, or even travel for treatment. You’re in control of how the money is spent, which makes these benefits more versatile than many people realize.
Myth 4: If You Use Living Benefits, Your Family Gets Nothing
Reality: Using living benefits reduces the death benefit—but it doesn’t eliminate it unless the full amount is withdrawn. Many policies allow you to access a portion of your benefit for qualifying events, leaving the rest for your beneficiaries. You can still protect your loved ones while taking care of yourself.
Myth 5: Living Benefits Are Too Expensive to Add
Reality: In many cases, living benefits are included at no additional cost, especially in newer life insurance products. When offered as a rider, the added premium is often minimal compared to the value they provide. Considering the potential financial relief during a health crisis, the cost is well worth it for most people.
Final Thought
Misinformation about living benefits can lead to missed opportunities and avoidable stress during health-related emergencies. The truth is, these features can be a crucial part of a well-rounded life insurance plan—giving you access to funds when you need them most. Don’t let myths prevent you from making a smart, informed decision. Talk to an insurance agent who specializes in living benefits life insurance and get the facts that matter for your future.