What will my life insurance cover?

Life insurance is highly important if you want financial stability for your loved ones, final expenses, charitable causes etc. There are some other ways the person insured can benefit from their life insurance policy.

Life insurance policies are commonly used to cover accidental and natural death if that occurs during the term of the policy. The benefits are paid out only if the person insured passes away to a cause that is covered in the contract.

If the insured becomes afflicted with a terminal illness he may be able to use policy benefits to help pay for any medical expenses. These "living benefits" also known as "accelerated death benefits" are not always automatically included in you contract so you may want to check that with your insurance agent.

Life insurance allows you to build a cash value that can be used to help you get through a financial crisis.

If you have a serious illness or disability which prevents you from working to pay your premiums, you can have your policy pay its own. The "waiver of a premium" option will absolve you of the responsibility to pay your premiums if you're unable to work (for certain reasons and for a certain length of time).

Make sure you are aware of all the options available so you can use your policy in as many ways as possible.