- Death of Policy Holder
- Disability Determination
- Critical Illness Diagnosis
- Chronic Illness Diagnosis
- Return of Premium (ROP) refunds your premium if you don't have a claim.
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Universal Life has both an insurance and a cash value component to it. It is important to know that an Indexed Universal Life ("IUL") policy is indirectly tied to the performance of the stock market but it has a minimum return (usually 0%). This means that, as the market does well, your policy will accumulate cash faster but if the market crashes, you won't lose money; you'll just earn 0%.
IUL policies usually have the same living benefits riders that a term policy would, but because you're able to accumulate cash, the monthly premiums tend to be higher. They are, however, typically cheaper than Whole Life policies, they offer the ability to increase or decrease your monthly premium and funded well enough, they can be an excellent way to supplement your retirement income with tax-free money.
Whole life is less commonly used for mortgage protection because it usually does not offer living benefits, but it does have one very important use: Because the underwriting requirements for whole life insurance are typically less strict than for Term and IUL policies, Whole Life can be a great way for someone with serious health issues to still own a policy that will pay the mortgage when they die.
The death benefit coupled with the ability to withdraw cash from the cash value of the policy to help pay mortgage payments or medical bills in the event that you are too sick to work makes Whole Life worth considering - especially when Term isn't possible because of your health or occupation.
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