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Life Insurance Provides Vital Benefits

Life Insurance can provide the advantages for two important terms, Living Benefits and Death Benefit. Living benefits are provided before you die, and death benefits are provided to your beneficiary after your demise.

The Living Benefits of life insurance permits the policyholder to access cash while still alive. The Death Benefit of a life insurance policy is the amount your designated beneficiary will receive from the insurance company after your death.

Several permanent life insurance policies provide the advantages of fascinating living benefits. In most cases, it’s an addition to whatever death benefit is paid upon your demise. Permanent life insurance policies do it because they build equity known as “cash value”, which increases over time. This increase in cash value, along with tax advantages available with a permanent life insurance policy, permits you to enjoy several “living benefits”.

The fascinating living benefits include supplemental retirement income, long-term care, guaranteed tax-deferred growth, legacy opportunities, tax-free access to cash value, and college savings.

The Living Benefits of life insurance in this instance are not the same as a Living Benefits Rider. That’s an option you can add to some life insurance contracts that enables the policyholder to receive an advance payment of the death benefit in event of catastrophic or terminal illness. It’s also called an Accelerated Benefits Rider.

Living Benefits are in most instances associated with permanent (cash value) life insurance. However, term life insurance policies can be purchased with one or more specific benefits, which will pay you while you are still living. The living benefits provided by term life insurance policies have to do with circumstances like sickness, especially, ones like being critically, terminally or chronically ill. In these situations, they are known as accelerated benefit riders. They only affect when the insurance company pays the money. They do not affect how much is paid.

People who are insured and suffer terminal, chronic or critical illness will bless the day they bought life insurance with those riders.