What are mortgage protection living benefits?

Hello, this is Chad McMahan with Protect With Insurance, this is another mortgage protection video blog. This one is on mortgage protection, living benefits. 

What are these living benefits?

And out of an impact, my policy. How do they impact my loved ones? So I’m going to quickly cover that. This is going to be short and sweet. The series is very, very short videos, hopefully, power-packed with information that’s going to be helpful to you based on feedback that we receive from our clients.

 So living benefits, normally your policies have a death benefit. That means that when you die, the policy pays to your beneficiary or potentially to your contingent beneficiary or multiple beneficiaries.

 Living benefits are different. They are benefits that pay to you. You’re still alive, but you’re diagnosed with a medical condition. And the mortgage protection policy, the insurance company, they send you a big beefy check.

Sometimes it’s the full amount of the policy. It depends upon the condition, depends upon if it’s a chronic, critical terminal. Something else. 

Typically with these policies, if you’re diagnosed with a terminal condition, they’re going to send the entire policy amount. You know, if they say, OK, you’ve got a year or less to live in some cases two years or less to live. But chronic and critical aren’t necessarily life-shortening, let alone life-ending. But they make life harder. So critical conditions can be something as basic as a heart attack or stroke. These are things that can strike anyone.

Even if you’re in excellent health, you can have a heart attack, you can have a stroke. Just you can’t predict these things. You’re more likely to have them if you have health issues. But anyone can receive these things. And so there are lots of mortgage protection policies out there that will pay off the entire mortgage if you just get a heart attack. Very, very important stuff to have built into your policy. Now, chronic conditions can be a whole lot of things.

 Typically, you may hear something called Adel’s or Activities of Daily Living. These are things that we all take for granted, like being able to get out of bed without help, take prescription medicines without help, go to the bathroom. A whole bunch of other things, too. And so if you lose at least two of these ADLs.

 Then that triggers the chronic part of the policy. Some of these programs depend upon what’s important to you. It depends upon how much coverage you want, depends upon your health and your age. But you may be able to get one hundred percent payout on these things, or it might be a payout, a quarter of it. And then the policy continues. But let’s say it’s a three hundred thousand dollar policy. It might be that they send you one hundred grand and the policy continues, or it might be that they send you three hundred grand or two hundred or some other number. So reach out to us. Let us know how we can help. Mortgage protection is so very important. It’s saving financially, saving families without exaggeration, when someone passes away and the other cannot afford it anymore without the financial help of their partner, that’s now passed. And the last thing you want to do is worry financially and having this kind of policy takes care of it. So let us know how we can help you and everyone stay safe out there.