The new plans are called Living Benefit, Quality of Life, or simply, The New Life Insurance plans. In a nutshell, you no longer have to die to use them. The new benefits can be activated by several maladies that can profoundly affect you, and your bank account, while you're still alive. New life insurance policy.
With older plans, if you suffered from a covered malady that wasn't life-threatening, you may be out several thousand in co-pays, deductibles, non-covered medications, out-of-network medical expenses, potential travel, and your normal bills. At that point, your current policy may become useless, just another nagging payment or worse; suddenly unaffordable. For the first time, invasive cancer, heart attack, stroke, paralysis, organ transplants and several other diseases are covered, as well as cash-payouts for long-term impairment (care in your home, assisted living and nursing home.) The payouts come as an advance of the tax-free death benefit, and are self-requested up to 85% of your face amount. Just like the old plans, the remaining death benefit is paid out when you eventually die, but you’d only be offered the benefit if you requested it – say, if your ailment was to the point of significant out-of-pocket costs.
For example, if you had a $500K policy, you'd qualify for up to $425K for invasive cancer, stroke, long-term impairment and other benefits at no additional premium cost. Further, as long as you're accepted, the full array of benefits will remain with you for the life of the policy.
How to start a life insurance policy
Consider the case of Stacie Starkey, 39, who in 2005, was diagnosed with a form of invasive cancer: "Because of the Quality of Life... Insurance policy that we carried, I was able to get the best treatment instead of stopping to think about the cost of the treatments- that was never an issue."