The third in our series on life insurance riders, today’s topic is living benefits riders. As we explained in our earlier posts, life insurance riders are additional benefits that can be added to a life insurance policy. In other words, riders allow you to customize your life insurance coverage to meet your individual needs.
What is a Living Benefits Life Insurance Rider?
A living benefits life insurance rider allows the policy holder to collect their death benefit, while they are still alive, if they are diagnosed with a terminal illness. Benefits can then be used to help the insured cover healthcare costs and, in some cases, it may even be used to pay for life saving medical treatments. Living benefits life insurance riders enable the insured to access anywhere from 25% to 75%% of their death benefit, depending on the policy. Though policy owners can generally access funds by borrowing against or surrendering their policy, living benefits riders enable the insured to have access while keeping the policy intact.
At IntelliQuote we encourage our customers to consider their life insurance rider options. Though every situation is unique, most can benefit from purchasing one or more life insurance riders. For many working adults, purchasing a living benefits rider is a shrewd choice. Like any life insurance rider, a living benefits rider does cost a bit more in premium payments. It is, however, a great way to protect your loved ones from the extraordinary financial burdens they would face if you were to be diagnosed with a terminal illness.
Want to learn more about life insurance riders? Stay tuned to the IntelliQuote Life Insurance Blog. Here we will be explaining even more of your rider options and addressing other topics that affect your financial health. Subscribe to our feed and join in the conversation! As always, share your comments and questions below.
For past articles and information on life insurance riders, be sure and check out the first two in our series on riders today: