Can You Buy Term Life Insurance With Terminal Illness Coverage?

If you want to buy term life insurance, a terminal illness rider (also known as accelerated death benefit) is always recommended. The biggest disadvantage of having life coverage is that you do not see any of the money you pay for. Although the point of having life coverage is to protect others, sometimes you may be in a situation where some extra money would be really helpful.

heart.attackSuch is the case when you develop a terminal illness. Your life insurance rates will not be affected by any changes in your health that happen after your sign the policy. At the same time, you will not be able to claim any part of the benefit.

An accelerated death benefit rider can change the balance in your favor. It allows you to claim a part of the insurance proceedings if you develop a terminal illness. The money can be used to pay for your medical expenses and for your treatment. Your agency will not pay the entire death benefit. They may pay between 20% and 40% of the total policy’s value.

What qualifies as a terminal illness?

This is a good question, for which, I’m afraid, there is no clear answer. In most cases, an agency will specify what they mean by a terminal illness. Normally, someone is considered terminally ill if the estimated time of his/her death is in the next six or twelve months. However, accelerated death benefit can apply to clients who have developed cancer, diabetes, heart diseases and other serious medical conditions.

How much does it cost?

Accelerated death benefit riders are cheap. When you buy term life insurance with this rider attached, you will not see a big change in the initial price. The low rates are a big plus in this rider’s favor.

In conclusion, you can find term life insurance that provides coverage in case you develop a terminal disease. We can help you compare free online life insurance quotes. Visit our website for the best rates.