We usually think of life insurance as something which will help our family when we are gone. Sometimes it is possible for the life insurance to benefit us, and them, while we are alive.
5 benefits of life insurance while you’re alive
- People who do not qualify medically for long-term care insurance may buy a hybrid policy: one which pays for long-term care if they need it or pays a life insurance benefit if they do not.
- People who already have life insurance (or an annuity) may convert it to such a hybrid policy.
- In Texas people who are seriously ill with perhaps a two year life expectancy may convert the policy to a deposit in an FDIC-insured financial institution, receiving a certain amount each month for a specified number of months.
- People who are expected to leave within six months may accelerate benefits in a viatical settlement.
- People who have a universal life insurance policy with the appropriate rider, may borrow against it, accelerating the death benefit.
Overall, life insurance can provide financial security in various forms, before and after death.
Elder law attorney, Terry Garrett, CELA, is a member of the National Academy of Elder Law Attorneys and is an Approved Guardianship Attorney. She assists people in elder law, estate and special needs planning, guardianship and settling estates. She graduated with honors from Cornell University. She was on the Dean’s List at Wharton Business School. She earned her J.D. at Columbia Law School, receiving the Parker Award and a Mellon Fellowship.