Getting life insurance is a major decision that helps provide financial protection for your family—and peace of mind for you. But when looking at options, it’s common to come across two main types: traditional life insurance and life insurance with living benefits.
Both offer security, but they work in different ways and serve different needs. Understanding those differences is key when choosing the best one based on your goals and lifestyle.
Traditional Life Insurance
Main features:
- Financial protection for your family in case of the policyholder’s death;
- Payout of a lump sum or shared amount between the beneficiaries;
- No direct financial benefit to the insured while alive.
This type of insurance is a good choice if your main goal is to secure your loved ones’ future, especially if they depend on your income. It’s ideal for protecting your estate and ensuring your family’s financial stability after you’re gone.
Life Insurance with Living Benefits
Life insurance with living benefits expands on the traditional model by allowing the policyholder to access a portion of the funds under specific circumstances—while still alive. In other words, it not only protects your family but also supports you financially during critical times.
Key advantages:
- Access while alive: In case of a serious illness, disability, or other qualifying condition, the insured can access part of the policy to cover medical expenses or urgent needs.
- Financial flexibility: Use the money for treatments, home modifications, daily expenses, or simply to maintain quality of life during a tough time.
- Dual protection: Unlike traditional insurance, which only benefits loved ones after the policyholder’s death, this option can help both the insured and their family.
- Support during unexpected events: Having financial backup when you need it most, can make all the difference.
Which One Should You Choose?
The choice between traditional life insurance and a policy with living benefits depends on your goals and financial situation. However, in today’s world, traditional coverage can often feel limited—especially if your aim is to have more comprehensive protection that also meets your needs right now.
Life insurance with living benefits offers the same financial security for your dependents in the future, but goes beyond that—it supports you during your lifetime. It can help in unforeseen situations, like critical or chronical illnesses and even if there is a diagnostic of Alzeihmer..
Unlike traditional insurance, which only provides benefits after a future event, living benefits allow you to access funds while you’re still alive—offering more flexibility.
Today, trusted insurance providers offer modern policies that go far beyond illness coverage. These include options for business planning, estate transfer, retirement, college plans, and more.
That’s why life insurance with living benefits is the most strategic choice: it protects you from the unexpected while also supporting your long-term plans.
Lumis Wealth — For now, for tomorrow, for the future.
Planning for the future means securing peace of mind for you and those you love. Lumis Wealth, backed by National Life Group, offers personalized solutions for retirement planning, living benefits, wealth protection, and legacy strategies.
With the right guidance, you can prepare for life’s uncertainties, build financial stability, and protect what matters most.
For questions or personalized quotes, [click here to contact us via WhatsApp]. Follow us on Instagram to learn more about Lumis Wealth.
Note: This blog is intended to provide educational content about financial planning and life insurance. Keep in mind that conditions and needs vary based on individual factors like age, gender, health, and more. Always consult with a specialized life planner to receive a personalized quote and ensure the plan is right for you.