When we become end stage, many of our life insurance policies will pay part of our death benefit, tax-free, while we are still alive! If your life insurance policy allows and if you and your family can get comfortable and acknowledge that you are in fact terminal, it might be possible to receive up to 50% of your life insurance’s death benefit now.
Those policies that have this option, the expected time to your death will usually vary from 6 months to one year from when you file your claim. You need to check your individual policy and confirm the information with your broker.
Of course, this means that you must emotionally accept this reality before you will be able to apply for this benefit. It is hard for your family and partners to say that you will be dead in such a finite time, but once you can assimilate and accept this reality, the actual application becomes simply paperwork.
Joel T Nowak MA, MSW
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