New information article from Ronny Jetmore of Jetmore insurance:
I was not planning on writing on the subject of Life insurance, again, but a recent unforeseen phenomenon has occurred that is the beauty of insurers competing for market share, which translates into a better product for us. We all win, the company sells more, and the consumer gets more of what he/she wants.
I am speaking of a new type of the simple, cheap, and easy term life insurance that I like so much, that is now being presented, by one insurer for which I sell, with an option of “Living Benefits.”
This policy is not much more expensive than cheap term insurance I adore, but includes a safety net, if you will, that smells a little like disability insurance, without the hefty price tag that accompanies a robust long term disability policy. I would never advise anyone to purchase Living Benefits instead of an actual long term disability policy, though, if one already owns a long term disability policy, or simply cannot afford a disability policy, this option could help tremendously.
Allow me to explain:
In recent years, life insurers have, as standard practice, included a type of “living benefit” or what is more commonly known as an “accelerated death benefit” for an insured who has been given 12 months or less to live, by a qualified doctor. This would enable the insured to use a large percentage of the death benefit, while living, for anything, experimental procedures, vacations, estate organizing, or whatever. This is a wonderful benefit, that has benefited tens of thousands in our country alone.
This new “phenomenon” as I label it above goes a step further by offering a large percentage of these benefits also to those that are diagnosed with ALS (Lou Gehrig’s Disease), cancer, have a heart attack or stroke, kidney failure, or are in need of a major organ transplant. This part of the Living Benefits coverage is known as, “Critical Illness Coverage” and up to $500,000 of benefits can be accessed based on the severity of the ailment.
The other portion of coverage included making up Living Benefits is “Chronic Illness Coverage,” which are benefits accessed by the insured being unable to perform 2 of 6 activities of daily living, or as commonly referred to in the insurance business as “adl’s.” These would include bathing, continence, dressing, eating, toileting, and transferring.
Up to 24% of the death benefit may be accessed annually, for a maximum of $500,000 or 90% of the death benefit, whichever is less. This is real money, not a simple one-time payment of $5,000 purchased in a stand-alone “critical illness” policy at work, that typically costs a lot, for very little in benefit. This is a real life insurance policy, where the lion’s share of the benefits can be used when needed, for situations where you simply cannot work, and cannot take care of yourself.
Do yourself a favor and look at your coverages, or lack of, and determine what is needed and what is not. My guess, we may see other insurers step up and offer these types of benefits in the future, but for the time being, I am glad that we, at least, have one option by an international and strong company. The best way to really know if your current policy offers you this, is to speak to your agent, and ask for something in writing explaining any living benefits. Again, this is such a new concept, that you will probably hear the crickets chirp after asking your questions about this.
This time of year, I doubt you will spend much more time reading anything else about insurance, so I won’t try to claim any more of your time.
Thank you very much.
Ronny Jetmore
Principal
Jetmore Insurance Group, Inc.
PO Box 1893 9545 HG Trueman Road
Lusby, MD 20657
410 394 9000
410 394 9020 fax
www.jetmoreinsurancegroup.com
I was not planning on writing on the subject of Life insurance, again, but a recent unforeseen phenomenon has occurred that is the beauty of insurers competing for market share, which translates into a better product for us. We all win, the company sells more, and the consumer gets more of what he/she wants.
I am speaking of a new type of the simple, cheap, and easy term life insurance that I like so much, that is now being presented, by one insurer for which I sell, with an option of “Living Benefits.”
This policy is not much more expensive than cheap term insurance I adore, but includes a safety net, if you will, that smells a little like disability insurance, without the hefty price tag that accompanies a robust long term disability policy. I would never advise anyone to purchase Living Benefits instead of an actual long term disability policy, though, if one already owns a long term disability policy, or simply cannot afford a disability policy, this option could help tremendously.
Allow me to explain:
In recent years, life insurers have, as standard practice, included a type of “living benefit” or what is more commonly known as an “accelerated death benefit” for an insured who has been given 12 months or less to live, by a qualified doctor. This would enable the insured to use a large percentage of the death benefit, while living, for anything, experimental procedures, vacations, estate organizing, or whatever. This is a wonderful benefit, that has benefited tens of thousands in our country alone.
This new “phenomenon” as I label it above goes a step further by offering a large percentage of these benefits also to those that are diagnosed with ALS (Lou Gehrig’s Disease), cancer, have a heart attack or stroke, kidney failure, or are in need of a major organ transplant. This part of the Living Benefits coverage is known as, “Critical Illness Coverage” and up to $500,000 of benefits can be accessed based on the severity of the ailment.
The other portion of coverage included making up Living Benefits is “Chronic Illness Coverage,” which are benefits accessed by the insured being unable to perform 2 of 6 activities of daily living, or as commonly referred to in the insurance business as “adl’s.” These would include bathing, continence, dressing, eating, toileting, and transferring.
Up to 24% of the death benefit may be accessed annually, for a maximum of $500,000 or 90% of the death benefit, whichever is less. This is real money, not a simple one-time payment of $5,000 purchased in a stand-alone “critical illness” policy at work, that typically costs a lot, for very little in benefit. This is a real life insurance policy, where the lion’s share of the benefits can be used when needed, for situations where you simply cannot work, and cannot take care of yourself.
Do yourself a favor and look at your coverages, or lack of, and determine what is needed and what is not. My guess, we may see other insurers step up and offer these types of benefits in the future, but for the time being, I am glad that we, at least, have one option by an international and strong company. The best way to really know if your current policy offers you this, is to speak to your agent, and ask for something in writing explaining any living benefits. Again, this is such a new concept, that you will probably hear the crickets chirp after asking your questions about this.
This time of year, I doubt you will spend much more time reading anything else about insurance, so I won’t try to claim any more of your time.
Thank you very much.
Ronny Jetmore
Principal
Jetmore Insurance Group, Inc.
PO Box 1893 9545 HG Trueman Road
Lusby, MD 20657
410 394 9000
410 394 9020 fax
www.jetmoreinsurancegroup.com
I'll probably email Ronny and see if they can send me some info
