Living Benefits: The Smartphones of Life Insurance

Summary

The 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.