Prestizia Insurance Blog
Life insurance can be a big purchase for you and your family, and naturally, you would want to make the most out of it. However, there are multiple life insurance features that are usually left unused because the policy owner and beneficiaries know little about them. Here are some of less-known features you might find useful.
Accelerated Death Benefit (ADB)
With this feature the you can receive cash against the death benefit if you have a terminal illness. It can be anywhere from 25% to 100% of the death benefit.
Guaranteed Purchase Option (GPO)
A guaranteed purchase option guarantees that you can buy additional life insurance without furnishing evidence of current insurability.
Cash-value life insurance policies not only pays out upon your death, but also accumulates value during your lifetime. This means that you would have a form of savings with interest that can be withdrawn without worrying about taxes. However, any withdrawal may decrease the amount of death benefit.
Mortgage protection insurance
Through this feature upon your death your insurer will pay your mortgages freeing your beneficiaries from the obligation.
Survivor Assistance Services
Survivor Assistance Services will be given to the beneficiaries of your policies to assist them with financial and legal issues.
Spouse and child term rider
This gives you a cheaper option if you want to purchase a term-life insurance for your spouse or your children who are under 26 years old.
Employee Assistance Program (EAP)
An employee assistance program will help you with personal work-related problems by giving confidential assessment, counselling, referrals, and follow up services.
Waver of premium rider
This clause in an insurance policy waives your obligation to pay insurance premium if you have a serious illness or become disabled.
Long term care rider
By having this feature in your insurance policy, you can accelerate the death benefit to pay for long term care as it is generally not covered by health insurance, Medicare, or Medicaid.
Loans and cash withdrawals
You can withdraw money or take a loan using cash value of the insurance policy as collateral. Loans given through this feature would have lower interest. Take note that unpaid loans will reduce death benefit.
Take note that these features aren’t always included in every insurance policy, so you have to ask your insurer about it. Contact us if you’re in need of life insurance with these features. At Prestizia Insurance Group, we work hard in making sure that our clients are well-protected with policies that they can afford. To learn more about how we can help you, please contact our agency at (855) 436-6353 or Click Here to request a free quote.