Most life insurance policies purchased by residents of West Chester, PA, provide benefits to designated beneficiaries upon the policyholder’s death. However, if you have health concerns and anticipate needing extensive medical treatment before your death, you may wonder whether your policy can help cover expenses while you are still living. Griffith Insurance LLP can help you explore life insurance options that may address this need.
Include a Living Benefit or Critical Illness Rider
If you are concerned about the cost of long-term care, you may find relief in knowing that some life insurance policies offer a valuable provision that can help. A Living Benefits Rider or Critical Illness Rider allows you to access a portion of your death benefit while you are still alive if you meet the criteria for a qualifying condition. These conditions may include:
- Invasive cancer
- Heart attack
- Stroke
- End-stage kidney disease
- Major organ transplant
- ALS (Lou Gehrig’s disease)
Coverage varies by policy, so review your specific terms to understand which conditions qualify. Generally, you can use the accelerated benefit for any purpose, such as paying medical bills, covering mortgage payments, or managing everyday living expenses. Depending on your policy, you may receive anywhere from 25% to 100% of your death benefit as a lump-sum payment.
Consider the Trade-Offs
While accessing your life insurance early can provide financial relief, it also reduces the benefit available to your loved ones after your passing. In some cases, fees may also apply, depending on your policy’s terms. Additionally, these benefits are typically available only once, so consider the timing of your request carefully.
To better understand how your life insurance policy can support you during your lifetime, contact the team at Griffith Insurance LLP. We proudly assist residents of West Chester, PA, in exploring their coverage options and selecting policies that best meet their needs.
