Benefit 5. Use of Living Benefits
In addition to the tax-free access to your cash value, some insurance policies offer an added provision called a "rider," which can trigger some of the death benefit to be paid out while the insured is still living, under certain circumstances, such as a terminal illness, a critical illness, or a chronic illness, which might cost significantly for the treatment of the illness. The funds are available to use for any reason.
However, not all insurance policies include such "living benefits riders", especially term life insurance policies. Please contact us if you are interested in such riders while only purchasing a Term life product.
In our next blog post, we will discuss the sixth benefit of life insurance that people haven't thought of - legacy planning.