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Living Benefits Riders
What You Need to Know
Living benefit riders on a life insurance policy must be part of your original life insurance contract. If you don't have a living benefit rider or don't qualify for the living benefits, a life settlement may be a viable alternative.

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LIVING BENEFITS RIDERS | WHAT YOU NEED TO KNOW


What are living benefits?
A living benefit on a life insurance policy is an option added to the life insurance contract which enables the policy owner to apply for an advanced payment on the death benefit during the lifetime of the insured. This option generally becomes available if the insured is diagnosed with terminal illness or other severe medical conditions that limit life expectancy to under 24 months. The amount paid under the living benefit rider is typically between 25-100% of the policy's death benefit and any benefit remaining at the time of death would then be granted to the policy beneficiaries less any life insurance company fees for the advanced payment.

What if you do not qualify for the living benefit rider?
Many policyholders do not qualify for the living benefit option due to the requirement for the insured to be diagnosed with a terminal illness with a life expectancy prognosis of under 24 months. Many insureds who have a life threatening health condition may have a longer prognosis and do not qualify for the living benefit. Most life insurance companies do not have any alternatives to provide financial relief to those who need to access the future benefits of their life insurance. This was the primary reason why the secondary market for life insurance developed. Now, policyholders who do not qualify for a living benefit, or who do not have the option available, may be able to receive cash from the life settlement option.

What is a Life Settlement?
A life settlement is an financial alternative to a living benefit that allows a policy owner to sell their life insurance policy to a state licensed financial institution in exchange for the ownership and beneficiary rights to the policy. The financial institution then must continue to pay premiums to the life insurance company and will eventually receive the death benefit when the insured dies. Your beneficiaries will not receive any benefits under a life settlement. The life settlement option allows policy owners to use the proceeds of the sale to help pay for medical bills, living expenses or anything else they choose. Click here for more information on the life settlement option.

How can Welcome Funds help you?
Welcome Funds can assist you in determining if your life insurance policy provides a living benefit option by reviewing a copy of your life insurance policy and/or by confirming it with your life insurance company. If you do not have a living benefit rider, we may be able to assist you with the life settlement alternative. There is no cost or obligation to determine your eligibility, feel free to call us toll-free at 1-877-227-4484 or complete our Quick Online Qualifier to find out if your policy is eligible for a life settlement.

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Related Pages: Sell Your Life Insurance Policy for Cash