High Deductible Survival Plan – Part Two

Presented by Brian Leising

In part one, I discussed the needs many people have for both money to pay high health insurance deductibles and life insurance coverage. What if a life insurance policy could provide a traditional death benefit and a living benefit that clients could use to cover their deductible? Such policies do exist. In fact, one major insurance company lists cancer, heart attack, stroke, major organ transplant, end stage renal failure, ALS, blindness, paralysis and loss of two or more limbs as qualifying conditions to accelerate part of the death benefit.

How much money could they get from their life insurance policy if one of these things happened? Here is an example from that same insurance company estimating how much money a 40 year old male with a $500,000 death benefit might receive:

Age at Claim                                 SEVERITY
Minor             Moderate             Severe
50                           $93,273         $184,293            $315,259
60                           $72,065         $187,309            $349,915
70                           $1,000           $63,466              $298,004

The carrier will categorize the client’s condition at the time of claim as minor, moderate or severe based on how that condition affects their life expectancy. The more severe the condition, the more money they receive. Any funds paid to the client while living reduce the death benefit dollar for dollar. Your clients no longer have to wait until they die to benefit from their term life insurance policy. How much does something like this cost?

Here’s an example: For a non-smoking, preferred plus male, age 40 seeking $500,000 on a 30 year term life, the lowest price is $54.50/month. Another company with a one-time living benefit option costs only 36 cents more. A third company offers a traditional term plan that comes within a couple of dollars, with their living benefit product running only slightly more at $66/month. If your client can afford the $54 product, do you think they could afford just $12 more?

In part three, I will explain methods and tools you can use to market this new term life policy to your existing clients.

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