Pepe Insurance Agency BLOG
An accelerated death benefit (ADB) is a life insurance rider that pays out some of the death benefit while you are alive if you are considered terminally ill or chronically ill. It is a living benefits rider that lets you withdraw from the death benefit when you have a terminal illness. With most companies, this rider is usually included in your policy at no extra cost to you. Both term life and universal life policies offer this extra rider. Here we discuss who qualifies for the ABD rider, how it works, and what expenses it covers.
Life Insurance and Pregnancy
Having a child is a major life event that drives people to consider getting term life insurance. When you have loved ones who depend on you financially, term life insurance provides a cost-effective way to protect them from financial hardship if you were to suddenly pass away. If you plan on having children, many people seem to wait until they are pregnant or had the baby already before they purchase life insurance.
Yes, absolutely! No question about it. The stay-at-home parent is contributing multiple ways to the family, and the costs for those contributions can add up substantially. If the stay-at-home parent were to die, the working parent would still need to work, but would also need to pay for childcare and take on all of the household jobs. The price tag on childcare alone is expensive. It would be a huge financial strain on a family, especially after a terrible loss.
Life Insurance For a Young Family
Life insurance is one of the most valuable financial products that a young family can purchase. It is solely designed to provide financial support in the event that a wage earner in the family should die unexpectedly. Think about the consequences to your family if you were to suddenly die and your family has lost all of their income. Life insurance can help replace some or all of that income.
No Medical Exam Life Insurance
Several life insurance companies today offer life insurance with no upfront medical exam, up to certain death benefit limit. At the time of application, you are not required to undergo a medical exam until the company requests one. A life insurance medical exam generally requires you to give blood and a urine specimen, have blood pressure taken, have height and weight measured, and answer many medical questions from the exam vendor. It can be a great option if you are in excellent health and not looking for a large amount of death benefit.
Do I Need Term Life Insurance?
Yes, absolutely! Anybody with a mortgage, has a spouse and children, and significant debt should consider purchasing term life insurance. If you are the sole wage earner in your family, life insurance is vital to making sure your family is financially secure in the years after your unexpected passing. Have a 20-year mortgage on your home? Consider taking out a 20-year term policy to at least cover the mortgage.