Practical Guide: Choosing a Living Benefits Policy for Your Startup, 6 Key Questions to Consider
You’re sold on the idea. The tales of founders facing health challenges resonate deeply, and it makes perfect sense to use Living Benefits Insurance to safeguard your startup. However, diving into the insurance realm can feel daunting for someone more accustomed to pitch decks and product launches. You don’t have to become an insurance guru; what you need is a solid framework to help you make an informed choice.
Picking the right policy is a strategic move for your business. Here are six essential questions to pose to an insurance advisor to ensure you secure coverage that genuinely protects both you and your company.
1. What specific events trigger the living benefits?
This is the most crucial question. Not all policies are the same. You need to know precisely which medical situations will qualify you to access the funds.
Ø What to listen for: A robust policy should include coverage for critical illnesses (like cancer, heart attack, stroke), chronic illnesses (that require long-term care), and often terminal illnesses. Request a complete list of the conditions that are covered.
Ø Why it matters: You want a policy that encompasses the broadest range of scenarios that could pull you away from your business.
2. How is the benefit amount disbursed, and are there any restrictions on its use?
Understanding how you’ll receive the money is vital for your financial planning…….