A terminal illness is a devastating diagnosis. Dealing with medical treatments, possible pain and emotional depression can take their toll on even the most optimistic person. Suddenly the thought of leaving behind loved ones with extensive medical bills, educational considerations and financial woes can be overwhelming. However, it is not too late to obtain life insurance to solve some of these problems.
Terminal Life Insurance
Terminal life insurance policies are generally whole life policies. These policies provide guaranteed premiums and pay benefits to a designated beneficiary upon death. There are almost never any health questions asked, so the policy is easy to obtain. These policies will have much higher premium rates though. This is because there is not as much underwriting and a much higher risk to the insurance company.
Reviewing the Options
Carefully compare different policy quotes. Be sure to check on any policy exclusions, graded benefits or if there is a contestability period. A contestability clause can last up to two years and allows an insurance company to void a policy if they find any discrepancies or inaccuracies on the application. Once a policy has been chosen there is also a free look period for the policy holder to review the policy and make sure that it is as promised. If during this time, the policy holder decides to cancel the policy for any reason, all premiums must be returned.
Weighing the Cost
Life insurance may seem like a good idea, particularly if there is an imminent death looming. It can protect family members and help cover the cost of medical expenses or a funeral. Prior to making a purchase though, it is a wise financial decision to review the family’s financial situation and make sure the premium prices are affordable. If the policy premium costs more than the amount of the policy or if the death benefits are limited, it may not be worthwhile. However, terminal life insurance benefits are income-tax free.
Accelerated Death Benefits
Those terminally ill can also get another type of terminal life insurance known as an accelerated death benefit. This is a living benefit rider that can be added to a policy when it is purchased or afterwards. This type of policy allows patients to access a portion of their life insurance benefits before they die. It can be received in a lump sum or in monthly increments. The proceeds are then deducted from the face value of the life insurance policy. It can be used to live life to the fullest, pay medical bills or establish a trust for any children.
Terminal life insurance can provide a sense of relief during a trying and difficult time. For those facing death, knowing that their loved ones will be financially secure can relieve some of the burdens. For others the thought of fulfilling a bucket list can also be satisfying. Search our website to find the best cheap terminal life insurance prices available and compare, review and purchase a policy today.