Life Insurance with a Perk

Online, January 25, 2011 (Newswire.com) - Has your current broker shared with you a way to leverage life insurance for your health insurance? The jury probably will vote no. If that is the case they probably did not mention that sixty-two percent of bankruptcies are medical bankruptcies, and most of them had health insurance at the time of the onset of the illness. This is according to a Harvard Study.

Does that mean their health insurance failed? Most would believe that answer would be yes. However, that is not the case.

The first three to six months after the onset of the illness is the most critical. Financially, the expenses can range from $10,000 to over $50,000. Just the medical out-of-pocket expenses alone can reach about $10,000. The health insurance should pick up most of the medical bills. What about the non-medical expenses? Americans can have the best health insurance in the world, but it does not mean anything if they cannot afford to make the insurance premiums. This is when leveraging life insurance can make a huge difference.

Health insurance premiums are important to pay but how about your life insurance premiums? When individuals have a diagnosis they are in a critical state emotionally, and health wise; they are fighting for survival. What if their time comes to an end but they could not pay the life insurance premiums?

Assuming they are winning the fight for survival there are other things to consider. What about the mortgage or rent, food and clothing for the rest of the family? The kids still need help, financially and emotionally, how will they cover that? The everyday living does not stop because someone has to put things on hold to get better. Most people are facing this today in the turmoil economy with record job losses.

One alternative is to go back to work after the diagnosis. Work increases the stress in our lives. It is common knowledge that stress is counterproductive to improving our health. So where is the balance?

Americans draw from their 401K, annuity or other retirement funds. They worked so hard their whole life to save money. If Americans look at things from a bigger picture you would think most Americans work their whole life just so they can give it away to doctors, hospitals and creditors. However, that was not the original intentions.

A catastrophic illness does not discriminate on gender, origin, race, how healthy or unhealthy, etc. Most Americans go out of their way to insure what is important to them. This is typically an automobile, house, jewelry, and their life. They forget about their most important asset, their ability to earn a living. In America, for some reason we take things for granted.

Disability Insurance and Long Term Care Insurance just may not be enough. Life Insurance with Living Benefits may be the answer. This type of policy not only covers if someone dies but if they survive they will have access to real cash from the death benefit whether it is for Long Term Care, Disability or a Critical Illness. This can be an all in one package. There are some of us that are extremely healthy today. Why pay for the premiums of a Long Term Care Insurance or a Disability Insurance policy if potentially we will never use it. With this type of Life insurance it will still be passed down to the beneficiaries. Now Americans can protect themselves for today as well as years to come.