Term Life Insurance with Accelerated Living Benefits
Over the past twenty years term life insurance rates have drastically gone down in price because of new mortality and morbidity tables, causing insurance carriers to redesign products in order to stay competitive. It is similar to the old adage of “King of the Hill”, one-month ABC insurance company has the lowest term life insurance rates and the next month XYZ company beats them out by twenty cents. Insurance companies have also started to get more competitive by offering term life policies with accelerated living benefits, which means the policyowner can access the death benefit in the event of a qualifying illness for terminal, chronic, or critical illness. Taking a few minutes to understand the various term life insurance options could make the difference from financial disaster and declaring bankruptcy if a major medical issue arises. Most people understand the importance of getting the correct amount of term life insurance death benefit, however they are generally unaware about term life insurance with accelerated living benefits options.
How Accelerated Benefit Riders Work
- Terminal illness – if a physician diagnoses the insured with an illness projecting a life expectancy of 24 months or less to live.
- Chronic illness – if the insured is permanently unable to perform at least two activities of daily living (bathing, continence, dressing, eating, toileting and transferring), or if the insured suffers from severe cognitive impairment.
- Critical illness – if the insured has a heart attack, cancer, stroke, major organ transplant and kidney failure are some examples.
Term Policies with Accelerated Benefits in Seattle Washington
People who live in Seattle and all over Washington State can now purchase term life insurance with these benefits built into their policy. Term life insurance with living benefits will typically be a few dollars more than other low-cost term life insurance options, but definitely worth taking a look at to see if it is a better solution when purchasing a policy. People who get sick can potentially accelerate their term life insurance death benefit in order to pay bills if they have these accelerated options built into their term policy whereas the cheapest term policies do not have these three accelerated benefit options. It is smart to look at all term life insurance options before making a decision solely based on lowest price.
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How long of a term should someone choose?
Level term life insurance typically goes for ten, fifteen, twenty, and thirty years. There are a handful of companies who sell annual renewable term policies which means the premium goes up each year on the renewal date of the policy. Typically, people will take out a level term policy to get them by until retirement age which is normally between sixty-five and seventy. Meaning if someone is thirty-five years old they will purchase a thirty-year level term which will lock in the premium and death benefit until age sixty five at which point they will ideally have the house paid off as well as other retirement assets. Term life insurance does an amazing job of protecting a person’s income up until retirement, however term life insurance will expire or the insurance company will price the policyowner out of keeping the policy at the end of the level term period. Currently in the state of Washington term life insurance has to be guaranteed renewable until age ninety-five, which means premiums are guaranteed not to change during the level term period but after the level term period the policy switches to annual renewable term and the premium goes up by about twenty times. If the need for life insurance is temporary then term life insurance with living benefits becomes a great option. For more information about term life insurance options or to get a free instant quote please visit pacificinsurancegroup.com.
