Frequently Asked Questions

Heart Vector | Cape Coral, FL | Go for Living Benefits

  • What about Living Benefits?

    Living Benefits are additional riders that make life insurance more than just a death benefit. Living Benefits provide access to some or all of your death benefit while you are still alive in the event of qualifying illness. On some policies, Living Benefits can provide you with a lifetime income that you cannot outlive. 

  • What types of medical conditions are typically covered by Living Benefits?

    Commonly covered conditions include cancer, stroke, heart attack, organ transplant, and certain chronic illnesses. The specific conditions covered may vary by insurance provider and policy.

  • How do Living Benefits work?

    When a policyholder is diagnosed with a covered condition, they can make a claim for living benefits. The insurance company will typically pay out a lump sum or periodic payments, depending on the policy contract. This money can be used to cover medical expenses, replace lost income, pay regular bills or any other purpose the policyholder chooses.

  • Is there a waiting period before I can claim Living Benefits?**

    Yes, many insurance policies have a waiting or elimination period, which is a specified period after the policy is issued during which you cannot make a living benefits claim. The length of this period can vary by policy. Be sure to consult with a licensed insurance agent about this specific information. 

  • Are Living Benefits taxable?

    Generally, living benefits received from a life insurance policy are not usually subject to federal income tax. However, there may be exceptions, and it's advisable to consult with a tax professional to understand the tax implications in your specific situation.

  • Do I need life insurance if I am single?

    It depends, first ask yourself - “is anyone financially dependent on me?” You may not have a spouse who is dependent on you but what about other family members? Even if no one is dependent on you, you may want to consider purchasing life insurance to cover the repayment of debts, taxes, funeral and other final expenses.

    But before you make a final decision, think to the future. If you get married and have children someday, you may want to have life insurance coverage. If you buy coverage today while you're young and healthy, you'll get much better premium rates than if you wait. Rates increase as you age and if your health deteriorates.


  • Am I too young to buy an annuity?

    You are never too young to plan for your future and an annuity may be a good choice for your long-term savings goals, such as for retirement. The question you need to ask yourself is - “will I need to access the money before I am 59 ½?” Although you can take a distribution from an annuity prior to age 59 ½, the distribution may be subject to a 10% premature distribution penalty. If you think you may need to access this money on a more short term basis, an annuity may not be the right savings vehicle for you.

  • Should I purchase life insurance on my child?

    The idea of buying life insurance for your child is something no one wants to consider because it forces us to consider the unthinkable. But purchasing a policy for a child isn't just about having financial protection if the unthinkable happens; it's about ensuring the child's financial future.


    Purchasing a policy also locks in the child's insurability. Usually, children don't have to go through a medical underwriting process - the parents simply answer a few medical questions. As long as the policy remains in force, the child will always have life insurance. Most insurance policies today also offer optional riders that will allow the child to increase their insurance coverage when they reach certain milestones in life.


Living Benefits in the event of illness may be provided by riders, which are supplemental benefits that can be added to a life insurance policy and are not suitable unless you also have a need for life insurance. Riders are optional, may require additional premium and may not be available in all states or on all products.


The use of cash value life insurance to provide a resource for retirement or to provide a resource for college expenses assumes that there is first a need for the death benefit protection.


The ability of a life insurance contract to accumulate sufficient cash value to help meet accumulation goals will be dependent upon the amount of extra premium paid into the policy, and the performance of the policy, and is not guaranteed.



Policy loans and withdrawals reduce the policy’s cash value and death benefit and may result in a taxable event. Withdrawals up to the basis paid into the contract and loans thereafter will not create an immediate taxable event, but substantial tax ramifications could result upon contract lapse or surrender. Surrender charges may reduce the policy's cash value in early years. There is no guarantee that the policy will provide income sufficient to fund education.


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