December 2, 2022

Living Benefits Awareness Month: What is LBAM?

There is an epidemic sweeping the United States – and it’s not the one you’re thinking of.

This one is a financial epidemic, and it’s been raging for the better part of three decades now.

Medical bankruptcy has been decimating American families in earnest since the 1990’s – more specifically, bankruptcy resulting from medical bills following an unexpected major illness or injury.

It’s the reason one-third of GoFundMe donations ($650,000,000annually) now go toward covering surprise medical costs.

You can go back through the headlines and track the well-documented history of this problem. Here’s just a small sample from the past decade or so:

  • “Medical Bills Underlie 60% of U.S. Bankruptcies” (Fox News– June 2009)
  • “Medical Bills Are The Biggest Cause of U.S. Bankruptcies”(CNBC – June 2013)
  • “Healthcare Costs Are Bankrupting Us” – (CNN – May 2017)
  • “Study: 48% of New Cancer Patients Lose Their Entire Life Savings” (Business Insider - October 2018)
  • “Medical Bankruptcy is Killing the American Middle Class”(NASDAQ – February 2019)

This topic has been in the news, but if you’re waiting for government or the healthcare industry to come up with a solution for the problem, don’t hold your breath.

If American families want to rest assured that they won’t become a statistic in this epidemic, it’s clear that relying on health insurance alone isn’t an option. A study in The American Journal of Medicine found that 50% of all bankruptcies every year in America are medical bankruptcies, and 68% of those who went bankrupt were covered with health insurance that didn’t save them from going broke.

The good news? There is one little-known and extremely powerful way to help ensure that you will have the funds you need to navigate the myriad financial challenges that come with an unexpected major illness or injury: owning Living Benefits life insurance.

Living Benefits life insurance represents a modern twist on traditional life insurance. It’s identical in the way it pays out in the event of a death. But, crucially, Living Benefits life insurance offers its policy holders the ability to access their death benefit while they’re still living if they suffer a major illness or injury. Cancer, heart attack, stroke, major organ transplant, kidney failure, paralysis and more are covered.

If you have life insurance (and if you have loved ones who rely on your income to survive, all experts agree that you should), there’s no reason that it shouldn’t be a modern Living Benefits policy that grants you the ability to accelerate that death benefit while you’re still alive if you need to do so.

The problem is, most Americans aren’t aware that Living Benefits life insurance exists. That’s why Living Benefits Awareness Month, or LBAM for short, was created back in 2017.

Every January, Alliance Group and its agency partners launch a national awareness campaign aimed at educating Americans about the “new kind of life insurance you don’t have to die to use”. Those efforts are aimed at educating the public that Living Benefits exist, that they don’t cost any more than traditional life insurance that will only pay out if they die, and that making sure that their coverage includes these free features is the best way they can protect themselves from the epidemic of medical bankruptcy.

This January, tell a friend or a family member about Living Benefits by sharing this blog post – and even more importantly, reach out to your life insurance professional and make sure you have Living Benefits as part of your life insurance coverage. Make a commitment to protect what you’ve worked so hard to build – as well as the ones you’re building it for.




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