Term Life Insurance Benefits
While there are many life insurance options, the most popular is the term life insurance policy. Term life insurance is designed to remain until your arrears are paid off. Term life insurance policy is popular because it is the most affordable policy to purchase, and if you buy this policy at a young age, you can enjoy low rates.
On the contrary, term life insurance is solely an insurance product and does not feature a saving or investment element. It is a good thing, as it allows you to increase your returns by investing and saving privately.
For instance, if you own a term life insurance policy and you are unable to pay the premiums anymore, the best part is that you would not lose anything if you plan to abandon the policy.
Benefits of Whole Life Insurance
Whole life insurance is a permanent insurance product that fuses investing and life insurance benefits. If you purchase the policy, continue to pay the premiums, or accumulate cash value to cover the premiums, you are covered till your death. Although a whole life insurance policy is expensive than other life insurance policies, it has many incredible benefits. It provides life insurance and investment advantages. Also, you can use the cash value component as part of a complex estate planning stratagem. And it forces you to save for the future; you can extract loans from the cash value whenever required.
Life insurance riders
The whole life insurance can be more valuable for you if you add in an insurance rider. Although riders are optional, these adjuncts provide extra benefits that standard policy might not offer. Some of the rider options include:
- Disability Income Rider
This benefit provides you with a monthly income if you become physically or mentally disabled. It can be a substitute for long-term disability insurance.
- Disability Waiver-Of-Premium Rider
Unfortunately, if you become incapacitated, you can continue your life insurance policy and get your premium payments waived off until you recover.
- Term Conversion Rider
This add-on enables you to convert your term life insurance policy into a permanent life insurance plan.
- Accelerated Death Benefit Rider
Unfortunately, if you are diagnosed with a terminal illness, and you have limited time to live, you can receive the death benefit before you pass away. Although this will support your end-life expenses, it would reduce your death benefit.
- Long-term Care Rider
If you require long-term care like nursing, this rider allows you to use the death benefit for your expenses.
The most evident life insurance benefit is the tax-free cash payment for your beneficiaries at the time of your death. Hence, financial protection is the most incredible life insurance asset for policyholders.