Life insurance is typically used to provide financial protection for a loved one in the event of an unexpected death, however, some life insurance policies also include living benefits that can be used while the policyholder is still alive. These benefits can include:
- Accelerated death benefit: This allows the policyholder to access some or all of the death benefit while they are still alive if they are diagnosed with a terminal illness. This can be used to cover medical expenses, long-term care, or to provide financial support for their family.
- Long-term care benefit: Some policies include a long-term care benefit that can be used to pay for long-term care expenses such as nursing home or home health care.
- Chronic illness benefit: Some policies include a chronic illness benefit that can be used to pay for expenses related to a chronic illness, such as medical expenses or home modifications.
- Policy loans: Some policies allow the policyholder to take out a loan against the cash value of the policy. The policyholder can use the loan for any purpose, but they will be charged interest on the loan.
It’s important to note that these living benefits are not available with all life insurance policies, and they may have limitations and conditions. Additionally, taking a loan or accessing the death benefit while alive can decrease the death benefit amount. Therefore it’s important to consult with an insurance agent or financial advisor to understand your policy options and the impact of accessing these benefits
