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Life insurance perks to take advantage of

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Life insurance can cover multiple family members. Getty Images

Death is a part of life, and with that understanding comes the idea of protecting your loved ones financially following your death via life insurance. With term life insurance, you can guard against an early death that leaves your family in a difficult financial position, and with whole life insurance, you can gain lifelong coverage that, depending on your circumstances, might provide financial advantages to you and your family. 

But life insurance isn't just about providing a payout to loved ones if you pass away during the coverage period. Specific life insurance perks can vary depending on the type of insurance policy and the insurance provider, but there are many possibilities to consider, particularly by using life insurance riders to customize your coverage.

If you're in the market for life insurance then start by getting a free price quote so you know exactly what to expect.  

Life insurance perks to take advantage of

Some examples of additional life insurance benefits include:

You can access money if you get sick

Life insurance riders can help you access at least some of your policy benefit during your lifetime, such as with critical illness or chronic illness riders. Also known as accelerated benefit riders, these can apply to either term or permanent life insurance policies. By accessing some cash while dealing with an illness, you and your family might be more comfortable navigating that period, rather than having to wait until after your death.

You can cover other family members

Life insurance benefits don't have to be limited to the main policyholder.

With a child rider, you can add protection to your own policy in the unfortunate event of your child or children passing away. So, while you might not like to think about this type of tragedy, financially, it might make more sense to add this coverage to your own policy rather than taking out a separate policy for your child or children.

Similarly, a spouse rider can also add some financial protection in the event of your spouse's death.

You can get your premiums returned

For term policies, one potential life insurance perk is that you can get your premiums paid back to you if you outlive the term period. Known as a return of premium, this generally involves paying a higher amount in premiums during the life of the policy, and then in the end, you can get that money back.

While it might sound too good to be true, consider that with inflation and opportunity cost, getting money returned back to you later does come at an expense. Some people might prefer to pay lower premiums, for example, and invest additional money that would have otherwise gone to a return of premium policy. Others, however, prefer the sort-of built-in savings plan that can come with a return of premium life insurance policy.

Explore your life insurance options now by getting a free price estimate or use the table below to compare some top providers on the market.

You can access your account for cash

For permanent life insurance, you can often build up a cash value as part of paying your premiums. Then, depending on the specifics of your policy, that cash value can grow over time. And you may be able to access some or all of that cash, such as by withdrawing it, taking a loan against it, or using it to pay your premiums later on. You also might be able to sell your policy for cash.

Just be sure to read the fine print of your life insurance policy before accessing your account for cash, as you wouldn't want to unintentionally cancel your policy, for example. Also, keep in mind that you might prefer paying lower premiums for a policy without a cash value and instead invest or save that money on your own.

The bottom line

These are just a few of the many possible life insurance advantages that you can access. Different life insurance providers can offer different life insurance benefits, and with these extra perks often come additional life insurance costs. But you might find that the pros outweigh the cons, making life insurance worth it for you.

Obtain life insurance quotes for yourself to see what different policies have to offer.

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