If you are diagnosed with a terminal or critical illness, the plan will pay out up to 90% of the face amount in a single lump sum. A terminal illness is defined as a disease that cannot be adequately treated or cured and that is usually expected to result in the death of the patient within a short period of time. A few examples of a critical illness are heart attack or heart disease, stroke, coma, certain cancers, major organ failure which can result in s subsequent transplant, blindness, paralysis, deafness multiple sclerosis, etc. Since this benefit is paid as a lump sum prior to death, the monies can be used in any capacity you wish.

Term life with living benefits can eliminate the need for a separate critical illness policy and is generally more cost effective than a separate term policy and a separate critical illness policy.

Term Life (plain vanilla with no enhancements): This is the type of coverage that most people have since it’s the least expensive. This type of coverage is typically available in 10, 15, 20, 25 and 30 year plans. Once the term period expires, the coverage ends, however, most term life plans are convertible to a permanent plan at a significantly higher premium at that time. This plan is normally used for mortgage protection, income replacement and to pay for the education expenses of surviving children. A plain term policy is typically only needed until the mortgage is paid off and the kids are out of school. At that point, a more permanent, lower face amount solution would suffice as your needs will change.

Term life with living benefits is a relatively new concept and is a little more expoensive than plain term life, but is quickly becoming our most popular option as it should be. It’s the most comprehensive way to cover yourself over a multitude of potential life altering events.

If you have any questions about which style of life insurance would be best given your situation, please feel free to contact us at 866.270.6209 or visit our website at for more information on these products including a no obligation quote.

Selected Benefits has a A+ rating with the Greater Houston Better Business Bureau and is a designated “Benefits Partner” of the Texas Association of Realtors which is currently the largest group of self employed people in Texas. We work with most major life insurance carriers in the U.S. and have the ability to place you with the most competitively priced plans for your needs.