term life insurance with living benefits

While life insurance can benefit your loved one after you die, it can also provide benefits for them (and you) before that time. This is known as living benefits.

Chronic illness rider

Life insurance policies may include some living benefits riders, usually included at no additional charge. To qualify, however, you will need evidence of your serious illness. You may be able, at your expense, to withdraw up to 80% of your policy proceeds.

Long-term care (LTC) rider:

A $ 35-year-old non-smoker without complex health issues could pay as little as $25-30 per month for a $500,000 term insurance policy. It includes a terminal disease rider. A long-term care rider would cost significantly more for the same person.

A life insurance policy provides financial protection for your family if you cannot work. You can also access certain death benefits through life insurance policies with living benefits by adding optional riders.

Long-term care expenses are the only reason you may be able to receive some death benefit. LTC riders are expensive and can sometimes be called hybrid long-term care insurance.

Accelerated death benefits. This living benefit pays a portion of your term insurance policy if you have a terminal disease. This allows you to access the money you need to pay medical expenses and repay your debts. You can also use this money to travel or make memories with your loved ones. When it comes to these living benefits, here are four things you should keep in mind:

It allows you to access your benefit if you have a chronic illness that prevents at least two of six Activities of Daily Living (ADL). These include eating, bathing and dressing, toileting, transferring, and continence.