Living Benefits

What are living insurance benefits?

Life insurance companies usually write several kinds of insurance relating to things that affect finances after death, illness, injury, and in the case of annuities, long life.

You can acquire coverage for any of life’s outcomes. Die too soon, live too long, become unable to work.

Your ability to earn is a perishable asset

If you lost your house to fire, you would have insurance to rebuild it. If you made a mistake in your business or profession, errors and omission, or liability insurance would coverĀ  the loss. If you are involved in a car accident, insurance covers the costs and any damage to others that might occur.

We all understand insurance, but for some reason we don’t think losing our most valuable asset would matter.

Death and living too long are for another day.

Living benefits

There are several varieties. Some are suitable for you and some are not.

Disability income insurance is the first general category. You receive money, usually monthly, if because of illness or injury you are unable to work. There are many definitions and you should understand the differences. Unable to work at what? A good question to know about. Disability income insurance is a complex document with many definitions that matter. There are many options you can add. Cost of living adjustment for example. You need help with this purchase.

Do not judge based on price. Price is a weak indicator of value, and value is what matters to you.

Critical illness insurance is the next general category. .

This insurance does not pay monthly, it pays a lump sum after diagnosis of one of the covered critical illnesses. The idea is it gives you options for treatment , to accommodate time off work by a spouse or parent, and to cover other expenses like travel and accommodation near a specialized hospital. Just travel and other costs can easily become an expensive proposition. Again the definitions matter. Again use a helper who knows what to do.

Office overhead insurance is available. It pays monthly and is a cost recovery kind of thing. You have certain fixed costs in your business like rent, equipment leases, employees that would be hard to replace and other things like telephone contracts. The idea here is that with this coverage you will have a business to return to when you recover and will have the staff you need to operate. No draining savings to pay a lease.

Disability buyout insurance provides the capital to buyout a partner who has become unable to work. New cash flow demands and less help is a combination most would prefer to avoid.


Objectively assess would happen to your cash flow if you could not earn your normal income. You have two choices. Insure the loss orĀ  use up your savings to get by. Living without your income is harder than living within it, and that is hard enough.


I help business owners, professionals, and others understand and manage risk and other financial issues. To help them achieve their goals, I use tax efficiencies and design advantages to acquire more efficient income and larger, more liquid estates.

In previous careers, I have been a partner in a large, international public accounting firm, CEO of a software start-up, a partner in an energy management system importer, and briefly in the restaurant business.

Please be in touch if I can help you. 705-927-4770

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: