Life Insurance Offers You More Than Financial Security For Your Family
Purchasing life insurance is an excellent way to insure your family’s financial future in the event of your untimely passing, but there are other benefits to purchasing life insurance that many people don’t about.
One such benefit is that life insurance can help you afford the cost of treating a terminal illness. If you’re diagnosed with a terminal illness, many policies allow you to tap into the death benefit to help sustain your care. Often called “accelerated death benefits” and “living benefits”, this benefit is automatically included in some policies but may need to be added as a rider to others.
Another lesser-known benefit of life insurance is that term life and group life insurance policies can often be converted to permanent life insurance policies, even without the insured’s undergoing a medical exam. While permanent life insurance has higher premiums, it will ensure that you remain insured when your term policy runs out, which can be invaluable if you have a severe medical condition or lose your group benefits upon changing jobs.
A third impressive benefit of life insurance is that the cash value in your permanent policy can help you in thin times. Before you tap into your savings or take out a loan, be aware that cash value has accrued within your permanent policy. But also be aware that some policies subtract cash withdrawn from the death benefit, and that permanent policies usually don’t accrue significant cash value within the first six years.
A fourth benefit of life insurance is that it may help pay for your long-term medical care. Many insurers are now providing policies to which long-term care riders can be added. These riders allow you to access your death benefit to pay for assisted-living facilities and nursing homes. Taking advantage of long-term care riders is ideal for adults whose children are grown and who don’t have mortgage payments.
Another beneficial cash value aspect of permanent insurance is that the cash value can be used to pay the policy’s premiums. If you’re out of work for an extended period of time, using some of your policy’s cash value to pay its premiums can keep the policy from being canceled. You can also add a “waiver of premium” rider to your policy to ensure that your premium will be reduced if you remain out of work for an extended length of time.
Yet another rider-based incentive of health insurance is the offering of riders that allow you to turn your spouse’s insurance policy into your own when your spouse dies. This is especially valuable for those who are unable to get affordable coverage due illness or injury.
Life insurance is purchased under the aegis of providing financial stability for our loved one’s in the event of our passing, but there are many ways in which our policy can benefit us while we live. To choose the best life insurance policy for you, consult your local insurance agent.
Life insurance is purchased to insure the financial well being of our loved one’s when we die, but there are also a variety of ways that an insurance policy can benefit us while we live. For the best life insurance quotes available, visit Insure.com.
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