Home / Business / The Alemian File: The New Generation of Life Insurance

The Alemian File: The New Generation of Life Insurance

Don’t Have to Die Get the Death Benefit!

By David Alemian

During your working years, a critical illness such as a heart attack, stroke, or cancer can be financially devastating. Surprisingly, the financial difficulties are usually not the result of medical bills or high deductibles because they can be paid off over time. The big financial problems are the result of the lost income due to an inability to work. Health insurance is great, but it doesn’t pay your mortgage, and it won’t put food on the table.

When this topic comes up, people usually talk about disability insurance. Disability insurance is definitely a good idea, but it can involve long elimination periods of up to 180 days. An elimination period is the length of time that the insurance company doesn’t have to pay benefits. In other words, a person with a 180-day elimination period would have to be unable to work for 6 months before receiving benefits from the insurance company. Just imagine what would happen if you had no income for 6 months.

What can you do to financially protect yourself? Use a life insurance policy with living benefit riders. Also known as Accelerated Death Benefit Riders, these riders allow you to take a portion of the death benefit if you are stricken with a covered illness. What surprises most people is that you are covered even if you are expected to fully recover from the illness. Simply put, it is life insurance that you don’t have to die to use.

There are two types of living benefit riders. The first one is called a critical illness rider. Depending on the company and the policy, it can provide a benefit of up to one million dollars in cash, tax free, if you are stricken with a covered critical illness such as a heart attack, stroke, cancer, blindness, ALS disease, and end-stage renal failure. It’s paid in a lump sum, in addition to any other insurance coverage you may have.

The second living benefit rider is called a chronic illness rider, it’s a great alternative to expensive long-term care insurance. It provides huge financial benefits if you cannot perform two of the activities of daily living, have cognitive impairment, dementia, or Alzheimer’s disease. Just like the critical illness rider, this benefit is paid in addition to any other insurance coverage you may have.

Unlike disability insurance these policies do not have elimination periods.

If you have questions, send an email to David@TheAlemianFile.com. If you’re thinking about life insurance check out LowestQuoteLife.com and The Alemian File Facebook page. Make sure that you “Like” the Alemian File Facebook page when you visit.


About David Alemian

Successfully creating affordable retirement plans guaranteed to last a lifetime is a unique, specialty skill. It’s a challenging arena but respected writer David Alemian makes it look easy. Alemian is a leading retirement expert and nationally recognized authority whose expertise is shared via video columns, numerous journals, and talk-shows.

His national recognition results from both revolutionizing and revitalizing how organizations and individuals like you and me plan and save for retirement. Alemian is considered “The Go-To Guy” for creating and implementing absolutely irresistible, lifetime retirement pension programs.

Formerly the host of “It’s About Money” Radio Show, Alemian has also produced and is featured in over 200 financial education videos. Additional content can be found in many well-respected, publications including: MD Magazine, Physician’s Money Digest, Physicians Practice, Journal of Clinical Oncology, Consultant Live, Psychiatric Times, Cancer Network, OB/GYN.net, and The Healthcare Executives Network.


This article reflects the thoughts and opinions of the author and is being provided for educational and informational purposes only. It should not be considered financial or tax advice. Please consult your financial or tax advisor about your situation.

%d bloggers like this: