An old man and his son or grandson go boating together

More protection for you and your loved ones

Use living benefits of life insurance to ease the financial strain of a serious illness.

If you are seriously ill, you may be comforted knowing your life insurance will provide for your loved ones.

But what if you don’t die after suffering a heart attack or stroke? Or are diagnosed with a serious illness, such as life-threatening cancer? Or you’re faced with being unable to perform basic activities of daily living? Who would you want to take care of you? How would you pay the bills?

Life insurance can also provide living benefits to help ease the financial strain of a serious illness.

I want my family to take care of me

Nearly one-fourth of America’s adult children provide personal care, financial assistance or both to their aging parents.¹ If this is the option you are choosing, make sure you’ve provided your family member(s) with the legal authority to represent you legally and financially. Also, you need to consider whether they can afford to pay the bills for you and if it’s fair to burden them with these expenses.

What are the expenses?

About 80 percent of older adults have at least one chronic illness; 68 percent have at least two.¹ Facing a serious medical condition can be financially overwhelming:

  • The average cost of survival for a heart attack or stroke patient is $100,500.²
  • The cost for the initial cancer treatment ranges from $20,000 to over $50,000.³
  • The average cost of a private room in a nursing home is almost $7,000 a month.4
  • The average cost for care in an assisted living facility is more than $3,000 a month.4

One in three Americans is part of a family that would consider such medical bills a financial burden. One in five struggles to pay those bills each month and one in 10 wouldn’t be able to pay them at all. Even for those who have private insurance, over 26 percent need to stagger their medical payments because they can’t afford to pay off those bills entirely at the end of the month.5

What about private insurance and Medicare?

Keep in mind that even the best health insurance won’t cover all your health costs. Even with the best planning, there will be unforeseen and unexpected charges. In fact, 62 percent of Americans who are struggling with medical bills have health insurance.6

Forty-six percent of Medicare beneficiaries being treated for a serious illness face prescription copayments of more than $500 a month. Medicare drug plans are allowed to charge steep copayments for the latest cancer, multiple sclerosis and rheumatoid arthritis medications. These costs can run to tens of thousands of dollars a year. Medicare supplemental insurance—Medigap—doesn’t cover those copayments.7

What about my savings?

You may feel that you have enough savings to cover these costs. But which one of your investments could you liquidate at the precise moment needed without concern about marketability, loss or taxation? These factors may erode the amount you have available to pay your bills. Do you really want to diminish the legacy you had planned to leave for your loved ones?

Life insurance with an accelerated death benefit rider can help ease the financial strain of a serious medical condition by providing an advance on your policy’s death benefit while you are living. There’s no better time than now to take steps to give yourself and your loved ones the assurance that comes with knowing you’re prepared.

¹Centers for Medicare & Medicaid Services, Chronic Conditions Prevalence State/County Table: All Fee for Service Beneficiaries 2015
²Heart Disease and Stroke Statistics – 2016 Update, American Heart Association
³http://costprojections.cancer.gov/annual.costs.html
4longtermcare.gov
5http://www.pbs.org/newshour/rundown/2012/03/report-a-third-of-americans-burdened-with-medical-bills.html
6January 2016 report, The Burden of Medical Debt: Results from The Kaiser Family Foundation/New York Times Medical Bills Survey
7http://www.foxnews.com/health/2011/06/13/seniors-face-medicare-cost-barrier-for-cancer-meds/