Even the best laid plans can change when the unexpected happens. You may find you and your family need extra financial help if you experience a debilitating accident or chronic illness that impedes your ability to work. A solution to ensuring your financial stability and maintaining your quality of life may be as close as your whole life insurance policy from Lafayette Life.
When you think about life insurance, many people may focus strictly on the policy’s death benefit, which is the amount your loved ones receive when you pass away. However, some policies have benefits that allow you to access a portion of your policy’s death benefit while you are still living. These living benefits are available in several ways and for many purposes.
An accelerated death benefit rider, included on Lafayette Life’s whole life insurance policies at no additional premium (although a fee of up to $250 may be charged for an advance payment), helps you access a portion of your policy’s death benefit if you become terminally or chronically ill or have a medical condition as specified in the rider.1
Living benefits can also be accessed through the standard features of a cash value whole life insurance policy – accumulated cash value and dividends.2,3 You can access these funds through tax-favored policy loans and withdrawals to fund a major purchase, supplement your income or simply provide in times of need.4
Life Insurance Benefits While You Are LivingOften known as a living benefit, an accelerated death benefit rider such as the Accelerated Death Benefit PLUS Rider5 from Lafayette Life, gives you the ability to access a portion of your whole life insurance policy’s death benefit before you pass. You can use the funds for any purpose — from medical expenses to the vacation of a lifetime.
The combination of a Lafayette Life whole life policy and our Accelerated Death Benefit PLUS Rider can create a flexible planning solution to help prepare you no matter what the future holds.
A Solution for Life’s Changing Needs
Whole life insurance is designed to address your long-term goals through consistent premiums and guaranteed accumulation of cash value over time. It is one of the few policies where the premiums, cash value and death benefit are guaranteed.6 Whole life insurance requires a higher premium payment, but it delivers many guarantees over other permanent life insurance products.
The accumulation of cash value and the tax advantages available with a whole life insurance policy from Lafayette Life allow you to enjoy many living benefits. Among them:
- Guaranteed, tax-deferred cash value accumulation: Your Lafayette Life whole life policy gradually builds cash value each year on a tax deferred basis. During your lifetime, you can access the cash value in times of need. This does, however, reduce your death benefit.
- Tax-advantaged policy loans: You may borrow money against your Lafayette Life whole life policy, using the cash value and death benefit as collateral, at any time and for any reason. Uses may include a home purchase, college tuition, business or commercial property investments, a financial emergency or supplemental income in retirement.
- Dividend payments: You have the potential to receive dividends annually on your Lafayette Life whole life policy. This can increase the value of your policy and the death benefit for your beneficiaries.
Living benefits are not intended to replace health insurance or long-term care insurance — but they can provide extra help if a terminal or long-term illness strikes.