Living Benefits: The Smartphones of Life Insurance

Alliance Group

14 Apr 201502:55

Summary

TLDRThe video script highlights the evolution of life insurance, drawing a parallel with the transformation of the telephone from a simple communication device to a multifunctional gadget. It emphasizes that life insurance has similarly evolved to meet modern needs, introducing 'living benefits' policies. These are likened to smartphones in the insurance world, offering accelerated access to the death benefit in the event of a critical, chronic, or terminal illness. The script argues that these policies can prevent financial ruin due to medical expenses and are available at the same cost as traditional life insurance, urging viewers to consider upgrading their coverage.

Takeaways

📞 Alexander Graham Bell invented the telephone in 1876 with the primary purpose of making phone calls.
📱 Modern phones have evolved to serve multiple functions beyond just making calls, such as texting, calculating, reading, planning, navigating, taking photos, playing music, browsing the internet, trading stocks, and even acting as flashlights.
🔧 Similar to phones, life insurance has also evolved over time to meet changing needs.
🗓️ Life insurance was originally designed in the 1600s to financially protect loved ones after the policyholder's death.
💊 With medical advancements, critical illnesses like heart attacks, strokes, or cancer are no longer inevitably fatal, with a 90% survival rate for heart attacks.
🛡️ New life insurance policies now include living benefits, akin to the 'smartphones' of life insurance, offering more than just a death benefit.
🚑 Living benefits allow for the acceleration of the death benefit in the event of a critical, chronic, or terminal illness, providing financial support while the policyholder is still alive.
💰 These benefits can help prevent financial ruin by covering increased expenses and reduced income during critical illness, often at the same cost as traditional life insurance.
📈 A critical illness can lead to increased expenses and decreased income, potentially leading to debt and bankruptcy; 60% of US bankruptcies are due to critical illness and medical expenses.
🏥 Policyholders with living benefits can opt to accelerate a portion of their death benefit to replace lost income and cover additional expenses, improving their quality of life post-illness.
🆕 The video suggests considering an upgrade from traditional life insurance to policies with built-in living benefits for comprehensive family protection.

Q & A

What was the original purpose of the telephone when it was invented by Alexander Graham Bell?
-The original purpose of the telephone was to make phone calls.
How have modern phones evolved from their initial design?
-Modern phones have evolved to include features such as text messaging, calculators, books, planners, navigators, cameras, music players, internet browsers, and stock trading, in addition to making phone calls.
What is the main purpose of life insurance as it was invented in the 1600s?
-The main purpose of life insurance was to financially protect your loved ones when your life is over.
How has life insurance evolved with modern advancements in medicine?
-Life insurance has evolved to include living benefits, which allow policies to provide financial support not just after death, but also in the event of a critical, chronic, or terminal illness.
What does a living benefits policy in life insurance entail?
-A living benefits policy allows the acceleration of the death benefit if the policyholder suffers a critical, chronic, or terminal illness, providing financial support while they are still alive.
Why are living benefits policies considered the 'smartphones' of life insurance?
-Living benefits policies are considered the 'smartphones' of life insurance because, like smartphones, they offer a range of additional features and benefits that go beyond their original purpose.
How do living benefits policies help in managing financial challenges during critical illnesses?
-Living benefits policies help by providing the option to accelerate a portion of the death benefit to replace lost income and cover increased expenses due to critical, chronic, or terminal illnesses.
What is the financial impact of critical illnesses on individuals in the United States?
-Critical illnesses can lead to increased expenses and decreased income, resulting in debt accumulation. In fact, 60% of all bankruptcies in the US are a direct result of critical illnesses and the medical expenses that follow.
How do living benefits help prevent financial hardship during critical illnesses?
-Living benefits can prevent financial hardship by providing funds to replace lost income and help with additional expenses, thus avoiding the debt trap that many face due to critical illnesses.
Do living benefits policies come at an extra cost to the consumer?
-No, living benefits policies come at no extra cost to the consumer, offering additional protection without increasing the price of the life insurance.
What is the suggestion for those who may still be using traditional life insurance policies without living benefits?
-The suggestion is to consider upgrading to a new evolved life insurance policy with built-in living benefits to provide more comprehensive protection for both life and critical illness scenarios.

Outlines

00:00

📱 Evolution of Phones and Life Insurance

The script begins by highlighting the evolution of the telephone since its invention by Alexander Graham Bell in 1876. Initially designed for making calls, modern phones have transformed into multifunctional devices used for texting, calculating, reading, planning, navigating, taking photos, playing music, browsing the internet, trading stocks, and even as flashlights. This transformation is likened to the evolution of life insurance, which was invented in the 1600s with the sole purpose of financially protecting loved ones after the policyholder's death. Just as phones have adapted to include more features, life insurance has evolved to meet new needs, particularly with the advent of modern medicine that has increased survival rates from critical illnesses.

🛡️ Introduction to Living Benefits Policies

The script introduces 'living benefits' life insurance policies as the 'smartphones' of the insurance world. These policies offer the traditional death benefit but also allow for the acceleration of this benefit in the event of a critical, chronic, or terminal illness. This feature can provide financial relief by enabling policyholders to access funds while still alive, potentially at the same cost as traditional life insurance. The benefits aim to protect the policyholder, their loved ones, and their financial stability, both in the event of death and in the face of critical illness.

💸 Financial Impact of Critical Illness

The script discusses the financial implications of suffering from a critical or chronic illness, noting that such events typically lead to increased expenses and decreased income. This imbalance can result in debt accumulation, a situation that many Americans face daily. It is revealed that 60% of all bankruptcies in the US are directly linked to critical illnesses and the subsequent medical costs. Living benefits policies offer a solution by allowing policyholders to accelerate a portion of their death benefit to replace lost income and cover additional expenses, thus preventing financial ruin.

🏆 The Advantages of Living Benefits

The script emphasizes the advantages of living benefits, which not only help policyholders survive critical illnesses but also enable them to maintain a quality of life afterward. Crucially, these benefits are offered at no additional cost to the consumer. The narrative challenges the audience to consider whether their current life insurance policy is equipped with these modern living benefits or if it is an outdated 'rotary phone' equivalent. It encourages viewers to contact the person who shared the video to learn how they can upgrade their coverage to include living benefits.

Mindmap

Keywords

💡Telephone

The telephone, invented by Alexander Graham Bell in 1876, was originally designed for one primary function: making phone calls. In the context of the video, the telephone serves as a metaphor for how products evolve over time to meet new needs. The script mentions the telephone's initial purpose and contrasts it with its modern uses, which include much more than just making calls, illustrating the concept of evolution by necessity.

💡Evolution

Evolution in this script refers to the process of change and development over time. It is used to describe how both telephones and life insurance have transformed to incorporate additional features and benefits. The term is central to the video's theme, highlighting the necessity-driven evolution from a single-function device to a multi-purpose tool in the case of the telephone, and from a post-mortem financial product to one that offers living benefits in the case of life insurance.

💡Life Insurance

Life insurance is a financial product that was invented in the 1600s to provide financial protection to loved ones after the insured person's death. The script discusses how life insurance has evolved to offer living benefits, which is a significant shift from its original purpose. The term is integral to the video's message, showcasing how traditional life insurance has been upgraded to meet modern health and financial needs.

💡Living Benefits

Living benefits are a new feature of life insurance policies that allow policyholders to access a portion of their death benefit while they are still alive, in the event of a critical, chronic, or terminal illness. The script positions living benefits as a game-changer in the life insurance industry, akin to the introduction of smartphones, offering additional value and flexibility without extra cost to consumers.

💡Critical Illness

Critical illness refers to severe health conditions such as heart attacks, strokes, or cancer. The script points out that modern medicine has improved survival rates for these conditions, which has led to the need for life insurance policies that can provide financial support during the illness, not just after death. This term is key to understanding the rationale behind the development of living benefits in life insurance.

💡Survival Rates

Survival rates in the context of the video refer to the percentage of people who live through a critical illness. The script highlights that 90% of people who suffer a heart attack now survive the event, emphasizing the importance of life insurance policies that can adapt to these improved survival rates by offering living benefits.

💡Financial Life

Financial life pertains to an individual's economic stability and the management of their finances. The video script discusses how living benefits can save one's financial life by providing a new list of ways to use the life insurance policy while the policyholder is still alive, thus preventing financial strain during critical illnesses.

💡Debt

Debt is mentioned in the script as a consequence of critical or chronic illnesses when medical expenses exceed income. The term is used to illustrate the financial burden that can arise from health crises, emphasizing the need for life insurance policies with living benefits to help manage these financial challenges.

💡Bankruptcies

Bankruptcies are referenced in the script to highlight the severe financial impact that critical illnesses can have on individuals and families. It states that 60% of all bankruptcies in the US are a direct result of critical illness and the associated medical expenses, underscoring the importance of life insurance with living benefits as a preventative measure.

💡Traditional Coverage

Traditional coverage refers to the original form of life insurance that provides financial protection only after the insured person's death. The script contrasts this with the new evolved life insurance policies that offer living benefits, suggesting that consumers should consider upgrading from the 'rotary phone' of life insurance to the more advanced options available.

💡Upgrade

An upgrade, in the context of the video, refers to the process of improving or enhancing a product to meet new requirements or preferences. The term is used to encourage viewers to consider modern life insurance policies with living benefits as an upgrade from the traditional coverage, which may no longer be sufficient to meet the complex financial needs associated with critical illnesses.

Highlights

Alexander Graham Bell invented the telephone in 1876 for making phone calls.

Modern phones serve multiple purposes beyond just making calls.

Life insurance has evolved similarly to meet new needs.

Life insurance was originally designed to financially protect loved ones after death.

Advancements in medicine have changed the landscape of critical illnesses.

90% of people who suffer a heart attack now survive.

New life insurance policies offer living benefits.

Living benefits policies are like smartphones of life insurance.

Policies can accelerate the death benefit for critical, chronic, or terminal illnesses.

Living benefits unlock new ways to use your policy while you're still living.

These benefits often come at the same price as traditional life insurance.

Living benefits protect you financially in case of critical or chronic illness.

Critical illness leads to increased expenses and decreased income.

60% of US bankruptcies are due to critical illness and medical expenses.

Policy holders can accelerate a portion of their death benefit to replace income and cover expenses.

Living benefits ensure not just survival, but a life after illness.

These benefits are provided at no extra cost to the consumer.

Consider upgrading to life insurance with built-in living benefits.