3 life insurance policies

Critical illness rider

The price of life insurance policies with living benefits will depend on how high your premium is after underwriting. Also, the riders you choose to add to your policy. Premiums for term life insurance are determined by age, medical history, and the coverage amount.

A living benefits rider is an add-on coverage to your basic life insurance policy. It provides additional protection and benefits, sometimes at an additional charge. A rider is helpful when you have special requirements not covered by your standard insurance policy. A rider can be used to customize your policy to meet your needs.

Permanent life insurance is a type of term life insurance with a death benefit. However, permanent life insurance also offers the opportunity to accumulate cash value tax-deferred, which is what a term policy does.

Permanent life insurance policies offer the possibility of accelerated death benefits, just like term life insurance.

Policy surrender. You cancel your permanent-life policy to receive the cash value section as a lump amount. The insurer will pay you the amount, less any outstanding debts and unpaid premiums.

The policy's death benefit can be used to pay living benefits, which allow the insured to get money while they are still alive. These funds can be used for medical, hospice, nursing home, and in-home caretaker expenses. Accessing living benefits will reduce the death benefit that your beneficiaries receive when you pass away.

When you shop for insurance, talk to the companies about whether or not you would like to add living benefits.

Premium return. This living benefit returns all tips paid during the term, provided you do not die. This policy is typically more expensive than traditional term life policies.