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A rider that accelerates your death benefit may pay a portion of the death benefit if you're deemed terminally ill. You could use the payout to cover medical expenses. You will lose a portion of your life insurance benefits if you cannot use the remaining policy.

Permanent life insurance policies may offer accelerated death benefits similar to term life insurance.

Ask insurance companies about adding living benefits to your policy if you are interested in this option.

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Different insurers have different timelines that allow you to access cash.

Accelerated death benefits. This living benefit pays a portion of your term insurance policy if you have a terminal disease. This allows you to access the money you need to pay medical expenses and repay your debts. You can also use this money to travel or make memories with your loved ones. When it comes to these living benefits, here are four things you should keep in mind:

A 35-year-old nonsmoker could pay as little as $25-30 per Month for a $500,000 policy (20-year) with a terminal illness rider. This same person could pay significantly more if they added a long-term care rider.

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Ask insurance companies to discuss your options if you are looking for living benefits.

The accelerated death benefit portion that you use may attract interest.

A life insurance policy is a financial safety net that provides financial security to your family should you become incapacitated. With life insurance policies, you can access some of the death benefits while still alive by purchasing optional riders.

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Premium waiver for disability. If you have a long-term disability, this living benefit allows you to skip premium payments. Although it is not a cash benefit, it can be a useful option as there's a 3 in 10 chance that you will face a disability that prevents you from working for 90 days or more at some point in your career.

You may be able to access the cash value or accelerate your death benefit, depending on whether you have a policy. These options are sometimes referred to as "living advantages" and can be one of the most valuable aspects of life insurance. Imagine the unexpected times in life. This is where having an extra source of income would be helpful.

Interest may be charged on any portion of the accelerated-death benefit you use.

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An alternative to this option is the "critical illness riders," which allow you to access your death insurance if you have a specific disease or ailment.

Cash value withdrawal. You can access a percentage of the cash value in your permanent life insurance policy by making a withdrawal. You will not owe taxes if the amount you withdraw exceeds or equals your premium payments. Taxes will apply if any portion you take out is from dividends, interest, or capital gains. Be aware that your policy's death benefit will be reduced if the amount is not repaid.

Living benefits protect your family from being responsible for your end-of-life care costs. Your gifts will reduce your lump-sum payments to beneficiaries. So you'll have to decide how much.

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Refund of premium. You get all your tips from the term back, as long as you aren't deceased. This type of policy typically costs more than a traditional term life policy.

Accelerated death benefits. If you are diagnosed with a terminal illness, this living benefit will pay out a portion of your term life insurance policy. This cash can be used to pay for medical bills, debt, or other necessities. The funds can also travel the world or create memories with loved ones. These are the four main benefits of this living benefit.

Specific policies let you access the cash value or accelerate the death benefit to your use while you're alive. These options are known as "living benefits" and could be the best-kept life insurance secret. It's possible to be surprised by life at times when having an extra source of income can prove helpful.

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Policy surrender. You can cancel your permanent policy and receive the cash value as a lump sum. This amount will be less than any outstanding loans or unpaid premiums.

Critical illness rider

Your life insurance policy may include living benefits at no extra cost. A terminal illness rider, for example, is usually included in term life policies automatically and without additional fees. Ask your agent about additional charges, chronic illness riders, or fees.

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