4 Little-Known Things Life Insurance Will Cover

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  • Life insurance is an essential part of anyone's financial plan, yet many people don't realize all the things it can cover.
  • There are many other benefits such as accidental death benefits, long-term care coverage, and living benefits.

Let's uncover the hidden benefits of life insurance.

Most people think of life insurance as a way to financially protect their families in the event of their death. While this is certainly one of the most important services life insurance provides, it's not the only thing that it can cover. In fact, life insurance policies can provide coverage for a variety of different situations and unexpected events. Let's take a look at some of these lesser-known benefits of life insurance.

1. Accidental death benefits

Many life insurance policies offer an additional benefit if your death is caused by an accident. While this type of coverage is usually limited to a certain amount, it can be invaluable. It's especially useful if your job has a higher risk of accidents. This includes first responders, pilots, and construction workers. It may also provide additional funds if you suffer from injuries or disabilities caused by an accident.

2. Long-term care coverage

Many life insurance policies now offer long-term care coverage as an add-on option. This type of coverage provides benefits that help pay for assisted living, home healthcare, nursing home costs, and more if you become disabled or ill due to old age or injury. This coverage can help protect your assets from being depleted due to long-term care costs, while also ensuring that you receive high quality care when you need it most.

3. Living benefits

Most people don't realize that many life insurance policies offer living benefits in addition to death benefits. For example, if you are diagnosed with certain terminal illnesses, your policy may pay out a portion of its face value so you can use the money for medical expenses before you pass away. This can be incredibly helpful for those who are facing expensive medical bills due to serious illnesses or conditions.

4. Retirement income supplementation

Another great benefit of life insurance is the ability to supplement retirement income by taking out loans against your life insurance policy's cash value component. You can also use the cash value as collateral for annuities or other investments to help generate income during retirement years. These options allow you to use your life insurance policy as a source of income when needed without having to surrender the policy or its death benefit protection.

Life insurance is often thought of as a way to protect your family financially in the event of your death, but there are many other ways it can provide financial assistance during difficult times. Accidental death benefits, long-term care coverage, and living benefits are all potential features offered by life insurance policies that could make all the difference when a policyholder is faced with unexpected events or expenses. When looking into purchasing a policy, make sure you understand what type of coverage is included so you have peace of mind knowing that you and your loved ones will be protected no matter what happens.

Our picks for best life insurance companies

Life insurance is essential if you have people depending on you. We’ve combed through the options and developed a best-in-class list for life insurance coverage. This guide will help you find the best life insurance companies and the right type of policy for your needs. Read our free review today.

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