The premature values of life insurance can be used for nursing care, if necessary.
Access to the cash value is available through a withdrawal of the cash value surrendering of the policy or policy loans. Long-term care riders can be purchased for a nominal charge from some life insurance companies.
What these riders do is make a portion of the death benefit, usually one or two percent of the face value of the policy, available each month that the insured qualifies for the benefit. The subsequent death benefit payable is reduced dollar for dollar for each accelerated benefit payment made under these riders.
According to Edward Graves, McGill’s Life Insurance, their pre-death benefit payments are usually subject to an aggregate limitation of 50 percent of the face value policy.
Long-term care riders provide two options; benefits are available for the insured lifetime needs and as survivor objections. Since there can be complications, it is important to talk to a qualified agent about the best protection for your needs.
Ten thousand Americans turn age 65 every day and because of failing health they do not feel that they have a chance of obtaining affordable life insurance. But insurance companies are beginning to provide opportunities beyond traditional guidelines for seniors. Highlights for seniors can include the following:
- Age availability from 25 to 85 years.
- Instant decision underwriting
- No medical exam
- Simplified health questions
If an individual dies within the first two years from an accident, then he or she is liable to get full disbursement for the benefit. However, if natural causes leads to death of the insured person and that, too, is within the policy’s inception within the first two years, then only a limited benefit would be disbursed.
Want to learn more about life insurance? Read our article The Most Frequently Asked Life Insurance Questions.