Life Insurance

LIVING BENEFITS

“Life Insurance you do not have to die to use…”

Living Benefits are the cornerstone of the edge that Arizona Insurance Exchange provides for its clients.

Most people purchase life insurance to provide a legacy of financial security at the time of their death. But doesn’t it make sense for the benefits to extend and be available for the difficult financial times they have to face if a chronic, critical or terminal illness precedes death? The industry calls the benefit an “Accelerated Death Benefit Rider.” We refer to it as real Living Benefits.

Most of us are in this profession because of a sincere desire to help others in a manner that is both unique and timely. Living Benefits are one of the reasons why our agents are so passionate about what we do every day.

How LIVING BENEFITS Work

Terminal Illness

Pays a benefit if you are diagnosed with a terminal illness resulting in life expectancy of less than 12 months (24 months in some states). This can be used for experimental medicine, prepare for final expenses or any other purpose you feel necessary.

Chronic Illness

Pays a monthly benefit should you become diagnosed as chronically ill and unable to perform two daily activities such as bathing, dressing, eating, or due to cognitive impairment. This benefit is paid annually (up to 24% of your death benefit). Policy must be in-force for 2 years.

Crititcal Illness

Pays a lump sum benefit should you suffer from a triggering illness such as cancer, heart attack, stroke, Lou Gehrig’s disease (ALS), blindness due to diabetes, kidney failure or major organ transplant, and more!

What can Happen to Us?

You may be familiar with some of these facts already. They show why it is important to have a flexible and comprehensive policy to cover different needs.

We may become terminally, chronically, or critically ill:

  •  Men have a 1 in 2 risk of developing cancer during their lifetime and women have a 1 in 3 risk.¹

  •  Every 30 seconds a new cancer is diagnosed in the U.S.¹

  •  Every 40 seconds someone suffers a stroke.²

  •  Every 26 seconds someone suffers a heart attack.³

  •  45% of heart attack victims are under the age of 45.⁴

  •  3 out 4 people (75%) over the age of 40 will experience a critical illness at some point in their future.⁵

  • Chronic Illness affects many people and can create additional expenses for a family. Some of these expenses may include:

    •  Nursing Home Cost for a Private Room: For nursing home care, the national monthly average is now $6,266, which translates into $75,190 annually.⁶

    •  Assisted Living Facility: For assisted living facilities the national monthly average is now $3,185, which translates into $38,220 annually.⁶

    •  Home Health Aide (Certified): For Home Heath Aide, the national monthly average is now $3,623, which translates into $43,472 annually.⁶

Did you know:

  •  48% of mortgage foreclosures are the result of financial hardship due to critical Illness (only 3% due to death).⁷

  •  48% of businesses that fail, fail because of a critical illness.⁸

  •  62% of bankruptcies are due to a critical illness.  Of those bankruptcies, 75% of them had health insurance.⁹

  •  1990 to 2008, spending on cancer care soared to more than $90 Billion from $27 Billion.¹⁰

  •  One in four cancer patients or their families said they used up all or most of their savings to pay for treatment.¹⁰

  •  One in eight people with advanced cancer turned down recommended care because of cost.¹⁰

We may die too soon:

  • Almost 75% of Americans agree that life insurance is the best way to protect survivors against the financial implications of the premature death of a   primary wage earner.¹¹

  • 68 million (32%) of American adults are uninsured.¹²

We may need additional income for retirement or other expenses:

  • 37% of American homeowners do not own a retirement savings account of any kind.¹³

  • 1 in 5 pre-retirees age 50 to 64 has less than $5,000 in retirement savings.¹⁴

Sources

1  “Cancer Facts & the War on Cancer”. LIMRA. 2007.
2  American Heart Association “Heart Disease and Stroke Statistics.”, http://www.amhrt.org 2010.
3  American Heart Association. “Hearth Disease and Stroke Statistics.” LIMRA.  2007.
4  American Heart Association. “Heart Disease and Stoke Statistics.” 2007.
5  Center for Disease Control, 2009.
6  Cost of Care Maps Genworth 2010 Cost of Care Survey- 2010
7  Get Sick, Get Out: The Medical Causes of Home Foreclosures” Health Matrix, 2009.
8  Critical Illness Insurance 101 by mark Goldstein, http://ezinearticles.com/?Critical-Illness-Insurance-101&id=4450375
9  The American Journal of Medicine, 2009
10  USA Today, 3/18/2010 and 10/31/2008
11  “America’s ‘Love-Hate’ Relationship with Life Insurance” LIMRA International. 2006.
12  LIMRA – Trends in Life Insurance Ownership, 2005.
13  Retirement Doomsday. http://www.forbes.com/2005/05/04/cx_da_0504topnews.html.2005.
14  Average Retirement Savings. http://www.zero2rich.com/average-retirement-savings.html

Testimonial Videos

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Complimentary Policy Review & Consultation

Arizona Insurance Exchange is an independent agency, which means we are not beholden to any of the national firms.  This independence affords us the ability to obtain the best coverage or product for your specific needs.

Please reach out to us using the links below so that we may provide you with a no-cost, no-obligation review of your current portfolio.  We look forward to assisting you with your insurance, annuity, and retirement needs.