Life Insurance for the Disabled
Just because you are disabled does not mean that you will not qualify for a life insurance policy. There are many policies that will accept you conditionally as long as you fit within a certain age group. These are conditional because there are usually time restraints placed upon how long the policy must be in effect before the entire payoff comes to fruition.
This does not mean that you should avoid this type of life insurance policy. As a rule, these policies need to pay out to your surviving beneficiary at least the amount of money that you pay in premiums. For example, if you buy a $10,000 policy, and then you pass away before the requisite two years prior to receiving full benefits, your surviving beneficiary will receive the amount that you have paid in premiums.
Why is this beneficial? Well, for one, the beneficiary will receive these funds tax-free. If your money was not in a life insurance policy, the money left to your heirs would be locked up in probate for up to two years, and then after they finally receive the money, they would have to pay taxes on it. The benefits of life insurance become clear when looking at them in this light. Most people want to have a life insurance policy in place so that their surviving relatives are not held responsible for any expenses or past debts that are owed. Burials are expensive and you don’t want to have your relatives be stuck with the bill. Having instant access to your money after you pass away will help to enhance your legacy left behind. There will be no resentment felt by your family for being stuck with large bills.
When you are disabled, finding a life insurance policy is tough. But most companies have open enrollment for at least one type of policy. In other words, the major insurance companies will find a policy that you will qualify for-regardless of your physical condition. While you will be paying a higher premium than more traditional policies, you will have a guaranteed tax-free benefit going to your surviving beneficiary. Life insurance doesn’t have to be a stressor because of these reasons. Make sure you shop around and find the highest payout for the lowest premium. Even if you have a physical disability and are confined to the home, there are policies for you available.
Life insurance is a good idea. If you delayed until you were older before getting a policy to protect your family, you are not alone. Insurance companies realize that people procrastinate and have created policies to fit this need in order to alleviate the demand for such policies. Even if you pass away before the minimum time has been put in to receive full benefits, your family will at least receive your premiums plus interest tax-free.
