Can I use life insurance while I'm living?
Many life insurance policies offer benefits that can be used during your lifetime, such as:
- Accelerated death benefit. If diagnosed as terminally ill, the insured may request payment of the life insurance policy's face amount instead of the death benefit being paid to a beneficiary.
- Portability. Under most group policies employees can take their life insurance protection with them when they leave the company or retire and take advantage of group rates and the convenience of direct billing.
- Waiver of premium. This feature keeps life insurance protection in force by paying the premium while the insured is disabled.
Cash accumulation
Some life insurance policies have a cash value account or investment component that lets you contribute premium in addition to the amount you pay for your insurance coverage. The money can stay in the policy to increase the amount paid when you die or may be used during your lifetime for long-term financial goals. Keep in mind the primary reason for purchasing a life insurance product is for the death benefit.
