living benefits life insurance

Policy loan. While you may be charged interest when you borrow against your permanent-life policy, this interest is generally lower than those charged by other lenders. You don't have to go through a credit check, nor must you adhere to long lists of restrictions.

The cost of a life policy with living benefits depends on the amount of your premium after you have been underwritten and what riders you have added to it. Premiums for term insurance policies with living benefits vary depending on age, health, history of medical problems, coverage amount, etc.

Long-term care (LTC) rider:

Permanent life insurance provides a death benefit, similar to term insurance. Also, it allows for cash accumulation on a tax-deferred basis. This is something that a term policy doesn't offer.

Specific policies let you access the cash value or accelerate the death benefit to your use while you're alive. These options are known as "living benefits" and could be the best-kept life insurance secret. It's possible to be surprised by life at times when having an extra source of income can prove helpful.

Long-term care benefits. You can add a long-term benefit to your permanent policy to help pay for long-term healthcare expenses not covered by your health insurance. The amount you use for a long-term benefit reduces the death benefit. This is a precious benefit, especially considering that 70% of those turning 65 will require some long-term care in the next few years.

When you shop for insurance, talk to the companies about whether or not you would like to add living benefits.

A living benefit rider provides additional protection and benefits on your primary policy. When you have specific requirements, a rider will come in handy. You can customize your policy with a rider.

It is available to you if your chronic illness makes it impossible for you to perform at most two of the six Activities of Daily Living.