10 Reasons to buy Term Insurance

1. Affordable: Term life insurance is typically the most affordable type of life insurance.

2. Flexibility: Term insurance allows you to choose the amount and length of coverage that best meet your needs.

3. Coverage for a specific need: Term life insurance can cover a specific financial need, like paying off a mortgage or paying for your children’s college education.

4. Simplicity: Term life insurance is a straightforward and uncomplicated type of life insurance.

5. Coverage for a set period: With term insurance, you can choose a policy that covers you for a specific period of time, such as 10, 20, or 30 years.

6. There is no cash value in term insurance, so you are only paying for the coverage you require.

7. Convertibility to permanent coverage: Some term insurance policies allow you to convert your policy to a permanent life insurance policy, such as whole life insurance, without having to go through medical underwriting again.

8. It’s easy to get: Term insurance is common and easy to buy from an insurance company or an insurance agent.

9. Financial protection for loved ones: Term insurance can provide financial protection for your loved ones in the event of your unexpected death.

10. If your employer gives you life insurance, you may want to buy more term insurance to make sure your family is covered enough.

Understanding Life Insurance with Living Benefits: A Comprehensive Guide

What are Living Benefits?

Living benefits are a feature of certain life insurance policies that allow policyholders to access a portion of their death benefit while they are still alive. This isn’t a loan, but an advance on the policy’s death benefit. The amount received is then deducted from the death benefit paid to the beneficiaries.

When Can Living Benefits be Accessed?

Terminal Illness

If the policyholder is diagnosed with a terminal illness that significantly shortens life expectancy, they may be able to access a substantial portion of the death benefit. This can help cover medical costs, living expenses, or any other financial needs.

Chronic Illness

Should the policyholder be unable to perform at least two of the six activities of daily living (ADLs) – eating, bathing, getting dressed, toileting, transferring, and continence – or suffer from severe cognitive impairment, they may be eligible to receive a portion of the death benefit. This can help cover the costs of long-term care services.

Critical Illness or Injury

Some policies may allow access to the death benefit if the policyholder suffers a critical illness or injury, such as a heart attack, stroke, cancer, or injuries from an accident.

Understanding the Terms and Conditions

The specific terms and conditions, including the amount that can be accessed and the qualifying conditions, can vary widely between different insurance companies and policies. Therefore, it’s important to carefully review the policy documents and consult with an insurance professional to fully understand the benefits and potential implications.

The Financial Relief of Living Benefits

Living benefits can provide significant financial relief during challenging times. However, it’s important to remember that accessing living benefits reduces the death benefit and may have tax implications. Therefore, it’s recommended to consider all options and seek professional advice before making a decision.