6 little-known benefits of life insurance

You don’t necessarily need to die to reap the rewards.

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Key points

• Life insurance covers relatives in the event of the death of the insured.
• Policyholders can use certain life insurance benefits while they are still alive.
• Read the fine print of your life insurance policy to find out what benefits you can get.

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Life insurance, in its most basic form, covers your loved ones after you die. Term life insurance is just that: a cash payment after death. But many of the best life insurance companies offer benefits to the policyholder who reads the fine print or thinks about buying an add-on, known to professionals as an insurance endorsement.

Policyholders can use the following little-known benefits during their lifetime.

1. Disability cover

If you lose a limb or are otherwise permanently disabled and unable to work, many insurance policies will continue to cover you for free until your policy expires. It’s an easy benefit to overlook, but it can save policyholders a lot of money when they need it most. Known as waiver of premium, many insurers include it for free in life insurance policies.

2. Terminal illness cover

If your doctor diagnoses you as terminal, many life insurance policies will allow you to withdraw your insurance benefits to cover whatever makes your life easier: hospice expenses, housekeeping, or whatever. Heck, you might even be able to take your family on a crazy vacation by lounging at the bottom of your to-do list. Known as a terminal illness rider or accelerated death benefit, many insurers include it for free in life insurance policies.

3. Healthcare coverage

If you need long-term living assistance, long-term care insurance will cover you. Apart from life insurance, long term care coverage can often be added to a life insurance policy. It’s usually cheaper than buying the fonts separately. Long-term care insurance will cover the cost of care, whether you go to a nursing home or opt for comfortable home care.

4. Live cover

Do you like to live? Great! Life insurance companies are on the same page. The longer you are expected to stay alive and healthy, the less likely you are to die and benefit from term life insurance. Some life insurers offer the Living Benefits Rider, which offers benefits ranging from free fitness apps to discounted health services. The different benefits of the Living Benefits Rider vary by insurance company, so be sure to do your research.

5. Retirement savings

If you buy comprehensive, universal or variable premium insurance, your insurer will invest some of your money in an insurance fund. You can usually withdraw some of these investments or borrow against these investments later in life. It’s not as effective as other forms of investing, but it’s something to keep in mind if you’re already considering alternatives to term life insurance.

6. Convenience

Modern insurers will do for you what they would not do for your parents or grandparents: insure you without forcing you to pass a medical examination. Haven Life does not require exams and is relatively inexpensive. Ethos will insure senior applicants who meet basic health questions. Many other insurers offer no-exam life insurance to potential policyholders.

The most important thing to remember is that benefits vary by policy and insurer. Shop around for life insurance companies that meet your specific needs — like the best cheap life insurance companies — which typically offer unique, little-known benefits.