When you purchase or upgrade a Life policy, make sure that you’re aware of the coverage options that can help you get the best value for your money. Industry experts recommend that you consider these five add-ons:
- Waiver of premium. If an incapacitating illness or disability puts you out of commission for an extended period, leaving you unable to cover policy premiums, the insurance company will pick up the payments (some companies might not offer this option, based on the policyholder’s age and health).
- Accelerated death benefit. Allows policyholders suffering from a terminal condition to take out cash advances against the death benefits of their policy. This feature was first offered to ease the financial burden on AIDS victims of medical care and living expenses during their final days.
- Long-Term Care rider. Similar to the accelerated death benefit, this option gives you the ability to apply part of the policy’s death benefit to cover the expenses of long-term care at home or in a nursing facility.
- Guaranteed purchase. Offers Life policyholders in their mid-40s or younger the right to buy more coverage up to a set amount on a regular basis without passing a physical exam. This option can help younger breadwinners raise their policy’s death benefit to keep pace with growth in their income and the size of their family.
- Spouse or child term rider. Allows you to extend coverage on your Term Life policy to your spouse or a dependent child younger than a specified age (usually 21 to 26). At this age, you can switch the policy to Permanent Life coverage with a face value up to five times that of the original – and with no need for a physical exam.
Bear in mind that these options will increase your premiums and might not be suited for you. Our specialists would be happy to analyze your situation and recommend the Life insurance program that can best meet your needs at a price you can afford. Just give us a call.
