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I have come in contact with a new life insurance product for the living.  I do not  mean, in the traditional sense your family or beneficiaries.  I mean you the policy holder. 

Western Reserve Life Insurance company, now offers LIFE INSURANCE WITH LIVING BENEFITS.  This is cool.

The plan is really four plans wrapped into one.

You get your traditional death benefit.  For this experiment let’s assume $250,000.  If you have what is know as a critical illness, such as a heart attack, you can get benefits to pay your bills.  Most of us will need some time off of work to recover, but you still need to pay the mortgage.  That is a huge benefit.

Have you looked into the cost of a long term care policy??  Sometimes they cost $2 or $300 per month.  That is a lot of money.  This plan you can use some of the death benefit if you are in need of long term care.

What about disability coverage?  Yep, this plan has that built into it as well.  It also has ( like many plans these days) an accelerated death benefit in which you can collect the majority to pay bills while you are alive, but with a chronic illness that you are dying of.

Now this plan does cost more that twice as much as a traditional life insurance policy.  You do get four times the benefit, and if you were to purchase all four of these products separately, it would cost you well more than four times the cost of the life policy.  Something to think about in 2011.