Commonly Overlooked Features of Life Insurance Policies

Purchasing life insurance in Valatie, NY is one of the most important financial decisions consumers make. While many people think of it as an essential part of a financial plan, it provides many benefits to both the policyholder and their loved ones. It’s also common that policyholders purchase coverage quickly without looking at the features of their plans, and therefore, failing to take advantage of them. Check out the most commonly overlooked features of life insurance plans and why they are important to you as a policyholder.

 

Features of Life Insurance

 

  1. Waiver of premium – This feature pays the premium of a policy if you become seriously ill or disabled. With this in place, you and your family do not have to worry about the financial aspect of maintaining your reliable life insurance. This gives you incredible peace of mind when the unthinkable happens.

 

  1. Accelerated death benefit – This feature allows you to receive cash advances against the death benefit of your policy if you’re diagnosed with a terminal illness. Many policyholders with this benefit use the money to help pay for treatment and other expenses when they only have a short amount of time left.

 

  1. Convertibility of term insurance – In most term life insurance policies, the policy offers convertibility from the original term policy into an individual whole life term. This means you can turn your temporary policy into permanent coverage.

 

  1. Long-term care riders – You can choose to add certain riders to your policy, and this is certainly one of the more popular riders. This allows you to use the benefits of your policy to pay for long-term care in exchange for a reduced life benefit. This can help you when paying for expenses while living.

 

  1. Cash withdrawals and loans – Some insurance policies allow you to withdraw or borrow money, using the cash value of the policy as collateral. Interest rates tend to be relatively low, making it a great option for families. You can also use the cash value of your life insurance policy to pay your premium if you need to stop paying the premiums for a period of time.

 

What Are the Different Types of Life Insurance?

 

  • Term life insurance – This is coverage that you acquire for a set period of time, such as 5, 10 or 20 years. It offers basic coverage at an affordable premium that many families can benefit from. After the term has ended, the surviving policyholder will need to purchase a new policy. If the policyholder dies within the term, it will pay out to the beneficiaries.
  • Whole life insurance – This permanent cover protects you for your entire life and you never need to renew it. It will pay out the death benefit regardless of when you pass away. It also accumulates a cash value that can be borrowed against, making it a great option for individuals and families that want the flexibility to access cash in an emergency.

 

How Do I Get Started?

 

When you are ready to secure the right life insurance for your finances and family, talk to the team at Kneller Agency today. We are ready to get started on your tailored coverage that can help your family through the toughest of times. At Kneller Agency, we are fully committed to helping you get the protection that you need. As an independent agency, we work for you, getting you the best price and coverage from among our many providers.

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