Living benefits are features of a life insurance policy that allow the policy holder to access a portion of the death benefit while they are still alive. These benefits may be available under certain circumstances, such as a terminal illness or the need for long-term care.
Term life insurance is a type of life insurance that provides coverage for a specific period of time, or term. Some term life insurance policies may offer living benefits as an additional option, which can be an important consideration for policy holders who want to ensure that they have access to financial resources in the event of a serious illness or injury.
Some common living benefits that may be available with term life insurance include:
Terminal illness rider: This rider allows the policy holder to access a portion of the death benefit if they are diagnosed with a terminal illness and are expected to have a life expectancy of 12 months or less.
Chronic illness rider: This rider allows the policy holder to access a portion of the death benefit if they are unable to perform two or more activities of daily living (such as bathing, dressing, or eating) due to a chronic illness.
Accelerated death benefit: This benefit allows the policy holder to access a portion of the death benefit if they are diagnosed with a terminal illness or are in need of long-term care.
It is important to carefully review the terms of a term life insurance policy to understand what living benefits are available and under what circumstances they can be accessed
These riders are usually additional features or benefits that can be added to a life insurance policy for an additional cost. Adding riders to your policy can help to tailor your coverage to meet your specific needs and provide additional protection for you and your loved ones.
There are several reasons why you may want to consider adding riders to your insurance policy, including:
To add additional coverage: Riders can help to provide additional coverage beyond the basic death benefit of a life insurance policy. For example, you may want to add a rider to cover long-term care expenses or to provide coverage for a specific medical condition.
To customize your coverage: Adding riders to your policy can allow you to customize your coverage to better meet your specific needs and goals. For example, you may want to add a rider to provide additional coverage for your children or to protect your business interests.
To add flexibility: Some riders can provide added flexibility to your policy, allowing you to adjust your coverage over time to meet your changing needs. For example, you may want to add a term conversion rider, which allows you to convert a term life insurance policy to a permanent policy at a later date.
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