Life Insurance Plans You Can Use While Living

Thinking of the future of your loved ones after you have passed away is not only a laudable measure, but a must that all of us should consider to do sometime, taking out life insurance today. However, there are times when you would like to gain access to the benefits that your life insurance policy grants, but then you notice that the only way to enjoy such benefits is being dead! The good news is that you can apply for life insurance plans that allow you to get Money from your life policy while you are alive. This way, you will not have to wait for the money until the day after you passed.

If you want to collect life insurance money while you are living, the first thing to keep in mind is your actual life insurance policy if any. Technically speaking, what you need is life insurance with accelerated death benefits, which means that you can be paid being alive and your beneficiaries, can still receive part of the amount of money stipulated in the insurance policy. So before going further, bring your life insurance policy to the table and read each by each line all of its clauses.

Sometimes life insurance policies are sold over the phone and you may not have a clear idea of what the conditions of your policy are. This is a very common situation happening when your bank, credit institutions, and other companies have sold your information to telemarketers, particularly before the disclosure of personal information were regulated. In fact, you might be overpaying your premiums without knowing why because the amount is charged against your banking account and the only thing you have as reference is the policy folio, but you never received the physical document. If you do not have a tangible policy in your hands, request it from your insurer. However, if you have the printed document, read it carefully.

Acceleration of benefits is usually one of the clauses of life insurance, as long as your plan insurance includes them. Having the answer you have been looking for -the existence or non-existence- of this clause, the next thing that you can do is cancel your actual life insurance policy if this clause is not included and you need part of that money being alive, or if the clause is attached, you have to understand what the specific situations are that grants you access to collect some money and how much.

Accelerated death benefits is not a way to get quick cash for sure, so never think of a life insurance policy as an alternative to avoid applying for a loan when you are in need of money. Acceleration of benefits refers to money that you can use while living, but to pay medical expenses and everything else associated to a terminal illness you are suffering from. If you are healthy, you can still get a life insurance plan with accelerated death benefits, but in the knowledge that you will not be able to use that money unless you meet the requirements to be paid.

Cancer is actually the most worrisome and frequent illness that people face and many insurance companies take applications from people suffering from this, VIH, AIDs, and other diseases. This way, if you take a life insurance plan with acceleration of benefits, your beneficiaries will be entitled to receive the money resulting from discounting the amount that you will receive from the policy while living. Some companies grant automatically 10% of the total coverage to these expenses, but regulations to obtain these benefits may be treated on an individual basis depending on illness or situations that derive from it, included but not limited to intensive care, rehabilitation, or undergoing therapy in a nursing home. The money received from accelerated death benefits is tax-free and it is not necessary to pay it back if you survive, so it may be a good option for you.

Author Bio: This article was written by Jane Terry of a resource that includes information on how to get free legal advice. 

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