Life Insurance Living Benefits
Life insurance is typically thought of as a way to provide financial security for your loved ones after you die. However, many life insurance policies also offer living benefits, which can provide you with financial assistance while you are still alive.
Living benefits are riders that are attached to life insurance policies that allow the policy owner to access some of the death benefit while they are still alive. These benefits can be used to pay for expenses related to a terminal illness, chronic illness, long-term care, or other financial hardships.
Some of the most common living benefits include:
- Terminal illness rider: This rider allows the policy owner to access a portion of the death benefit if they are diagnosed with a terminal illness that is expected to shorten their life expectancy to two years or less.
- Critical illness rider: This rider allows the policy owner to access a portion of the death benefit if they are diagnosed with a specific critical illness, such as a heart attack, stroke, or cancer.
- Long-term care rider: This rider allows the policy owner to access a portion of the death benefit to pay for long-term care expenses, such as nursing home care or assisted living.
- Disability waiver of premium rider: This rider allows the policy owner to stop paying premiums if they become disabled and unable to work.
- Return of premium rider: This rider refunds all or a portion of the premiums paid if the policy owner dies within a certain period of time.
The specific living benefits that are available will vary depending on the life insurance policy and the insurance company. It is important to read the policy carefully to understand the terms and conditions of any living benefits that are offered