A life insurance policy, depending on how you structure it, guarantees that there will be a pay out of the death benefit to the named beneficiaries after the death of the insured, provided the premiums have been paid on time and the death occurs within the term of the policy and not after an excluded incident. Life insurance policies, however, are blank canvases with many different coverage options in the form of riders. These riders can create a unique work of financial security for your loved ones.
The accelerated benefit rider, or terminal illness benefit, is one helpful rider available on many life insurance policies. A policy with an accelerated benefit rider requires that you pay a slightly higher premium (unless your insurer affords this rider at no cost). With this higher premium, you can access a part of your death benefit before you pass away if you’ve been diagnosed with a terminal illness. Some accelerated benefit riders can provide access to a portion of the death benefits without the terminal illness diagnoses if you have been incapacitated by illness or injury or require long-term care. Make sure to talk to your agent to see if the insurance providers you are considering offer these benefits too.
Find out how the benefit is paid, what the exact requirements for access are, and what the extra premium cost is before you add this valuable rider to your policy. If your family needs to access the benefit that the rider provides, be sure to have the directions for benefit payments somewhere that they can easily find them just in case you become unable to explain them.
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