Living benefits of whole life insurance are big advantages. They give you access to part of your life insurance money while you’re still alive. The cash value of a whole life insurance policy is considered a living benefit because it can help with retirement savings. Illness and long term care riders for your policy can also give you access to needed money if you have a diagnosis and meet the requirements.
Whole life insurance with a cash value means you’re making an investment in your future and the future of your family. Your cash value is guaranteed to grow over time with at least a minimum return, building financial security for retirement.
Most people think of the cash value of life insurance as a living benefit. But there are many more ways to benefit from your life insurance policy during your lifetime. If the need arises, you will want to have one of these riders to access a portion of your benefit early. Keep in mind that money taken out for these rider benefits reduces the benefit you leave your beneficiaries.
Terminal illness riders are often built into life insurance policies. If you are diagnosed with a terminal illness and are told you have six months or so to live, you can use the terminal illness rider to access money from your death benefit to help pay for end-of-life care and other expenses related to your illness.
Some critical illnesses dramatically reduce life expectancy and come with hefty medical expenses. If you are diagnosed with a stroke, heart attack, kidney failure, or other critical illness, you can use the critical illness rider to access funds from your benefit to help with these costs.
One determination for how well a person is able to function with advanced illness is their ability to perform the activities of daily living (ADLs). These activities include bathing, dressing, eating, and a few others. If you are diagnosed with a chronic illness and have become unable to perform at least two of the ADLs, you can use the chronic illness rider to assist with expenses.
Those ADLs are among the criteria assessed when a social worker checks if you need long term care. If you have difficulty with two or more of those activities and need long term care, you can use the long term care rider to access a portion of your death benefit and pay for those services.
At Hometown Financial Group, our agents help people like you benefit from their life insurance policies and find the best options(s) for their situation. Get in touch with us!
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