I've been shopping for a new life insurance policy and read that I could collect the death benefit before I die. How does that work?
I have an older policy from years ago but was looking to change to a new policy and I"m trying to compare the different benefits of each policy. Thanks!
Answers | 3
Though there are others, here are three accelerated benefits to look for: Terminal Illness, Chronic Illness, and Critical Illness. Upon diagnosis, these riders kick in and do their work. Not all policies have all of these, though most will include the Terminal Illness benefit. Keep reading the small print: it is often as important as the larger print.
There are also a critical illness riders now in many policies. These aren't LTC plans, but more of a way to use death proceeds prior to dying. Usually a person has to have been given 24 months or less to live. The money taken early, is deducted from the death benefit.