Life insurance can do a lot more than you may realize.
Did you know that life insurance can pay out while the insured is still alive? Living life insurance can pay benefits during critical times in a person’s life, and with the addition of various riders, it’s possible to get a policy that caters to your unique needs.
Life Insurance Policies Aren’t All the Same
When you think of life insurance, you probably think of the death benefit that is paid to the beneficiaries if the insured dies. This is an important benefit, and the funds can be used to help with funeral expenses, to secure the finances of the survivors, and much more. It is not the only possible benefit of life insurance, however.
There are actually many types of life insurance. Term life insurance policies provide affordable coverage for a set period of time. Permanent life insurance policies provide lifetime coverage and build a cash value. These options already mean that most people can find a policy that meets their budgets and needs. When you add in life insurance riders, you get the ability to create custom coverage.
Life Insurance Riders
In insurance, riders are clauses that add benefits.
Some life insurance riders offer payouts that can be triggered while the insured is still alive. An accelerated death benefit rider, for example, lets the insured tap the death benefit if he or she is diagnosed with a terminal illness. This way, the funds can be used to help with medical costs and other expenses while still alive.
Long-term care riders also provide the insured with a way to tap benefits early. According to the U.S. Department of Health and Human Services, most Americans turning 65 today will need long-term care at some point. Care can be very expensive, and it isn’t typically covered by health insurance. A life insurance policy with a long-term care rider is one way to plan for this common expense.
Other riders will waive the premium if the insured becomes disabled, allow the insured to purchase additional coverage without a medical exam, or create other benefits.
Who Needs Life Insurance?
Life insurance is considered a key piece of financial stability. It’s often accepted that parents with young children need life insurance, but many others can benefit from coverage as well. If you are worried about future medical, long-term care, and funeral costs, life insurance can help. Life insurance can also help with wealth transfer. With so many policy options, a financial advisor can help you find the coverage that’s right for your needs. Contact PTT to learn more.