‘If something were to happen to me down the road health-wise, I think it could be beneficial.’: I am considering living benefits term life insurance for future protection. How can I make the right choice?

Hi Money Minder,

So I’ve been thinking about getting life insurance soon, and I came across this cool thing called living benefits term life insurance. Basically, with this type of term life insurance, you can access the death benefit early if you get seriously sick or something (like terminal, critical, or chronic illness).

I heard that Transamerica and Prudential offer this type of insurance, so that’s pretty neat.

But I wanted to get some advice from you on whether this is a good idea or not. Like, I know Dave Ramsey would probably say just save and buy a regular term policy, but I feel like having this extra coverage could really come in handy if I ever need it.

Oh, and just to be clear, I’m not looking for life insurance as an investment (no whole life, universal life, or cash value stuff).

Thanks for your help!

Response from THE MONEY MINDER:**

Hello There,

While it’s great that you’re considering life insurance to protect your loved ones, looking into living benefits term life insurance is a practical and forward-thinking approach. The idea of being able to access the death benefit early in case of a serious illness can provide peace of mind in uncertain times. Companies like Transamerica and Prudential offering this product means they see the value in providing additional security for policyholders.

In terms of financial advice, Dave Ramsey’s perspective on saving money and purchasing a regular term policy is definitely a valid approach. However, considering the potential health risks in the future, having the option to tap into the death benefit in case of a terminal, critical, or chronic illness could be a valuable safety net. It’s important to weigh the benefits and costs of living benefits term life insurance against the traditional term policy to determine what aligns best with your current and future needs.

Remember, the key is to prioritize protection for your loved ones and yourself without relying on life insurance as an investment vehicle. Seeking advice from a financial advisor who can provide personalized guidance based on your unique circumstances and goals can also be beneficial.

THE MONEY MINDER