The average American carries approximately $168,000 in life insurance coverage, as reported by Statista. Although the life insurance policy primarily covers death benefits, it offers a gamut of other benefits you can enjoy while you are still alive. This is a fact that over 90% of policy holders are unaware of, according to a recent study by the American International Group (AIG) Some of the commonly overlooked features of life insurance policies include:
1. Accelerated Death Benefit
This is one of the overlooked characteristics of life insurance. Put simply, it allows you to receive advance benefits when you’re still alive, provided you’ve been diagnosed with a terminal illness. More specifically, the cash advances are meant to pay for your medical costs and other expenses within the short time they have left to live.
2. Waiver of Premium
Generally, misfortunes, such as chronic illness, serious injuries, and disability, can have a devastating impact on your finances. More than 50% of mortgage foreclosures and individual bankruptcy cases are caused by disability, as reported by the Council for Disability Awareness. Fortunately, most insurance companies waive premiums for life insurance policy holders whose finances have been affected by such adversities.
3. Guaranteed Insurability
The 2010 Affordable Care Act typically forbids insurance carriers from denying life coverage to citizens with pre-existing conditions. However, you can still be denied if the insurer perceives a bigger risk than they’re willing to cover. Luckily, the guaranteed insurability ride allows you to purchase additional life insurance at a future date without undergoing a medical exam.
These are some of the commonly overlooked features of life insurance policies. Are you looking for help with your life insurance coverage? If so, then contact the experts at Steve Wilk Insurance. Check out our new office today at 310 S Main Street, Suite C, Lombard, IL 60148.