6 Little-Known Perks of Life Insurance

You don't necessarily have to die to reap the rewards.

Life insurance, at its most basic, covers your loved ones after you pass on. Term life insurance is pretty much just that: a post-death cash payout. But many of the best life insurance companies offer perks to the policyholder who reads the fine print or thinks to purchase an add-on, known to those in the business as an insurance rider.

Policyholders may use the following little-known benefits while they're still alive.

1. Disability coverage

In the event you lose a limb or are otherwise permanently disabled and unable to work, many insurance policies will continue to cover you for free until your policy expires. It's an easy benefit to forget, but it can save policyholders quite a chunk of cash when they need it most. Known as the waiver of premium benefit, many insurers include it in life insurance policies at no cost.

2. Terminal illness coverage

If your doctor diagnoses you as terminal, many life insurance policies will let you withdraw your insurance benefits to cover whatever makes your life easier: hospice fees, housekeeping, or otherwise. Heck, you might even be able to take your family on that wild vacation loitering at the bottom of your bucket list. Known as the terminal illness rider or accelerated death benefit, many insurers include it in life insurance policies at no cost.

3. Care coverage

If you need long-term living assistance, long-term care insurance will cover you. Separate from life insurance, long-term care coverage can often be added to a life insurance policy. It's typically cheaper than buying the policies separately. Long-term care insurance will cover the cost of care whether you sally off to a nursing home or opt for comfortable at-home care.

4. Living coverage

Do you like living? Great! Life insurance companies are on the same page. The longer you're forecasted to stay alive and well, the less chance you'll die and cash in on term life health insurance. Some life insurers offer the living benefit rider add-on, which provides benefits ranging from free fitness apps to discounted health services. The living benefit rider's different perks vary by insurance provider, so make sure you do your research.

5. Retirement savings

If you purchase whole, universal, or variable insurance at a premium, your insurer will invest some of your money towards an insurance fund. You can typically withdraw some of or borrow against these investments later in life. It's not as efficient as other forms of investing, but it's something to keep in mind if you're already considering alternatives to term life insurance.

6. Convenience

Modern insurance providers will do for you what they wouldn't do for your parents or grandparents: insure you without forcing you to undergo a medical examination. Haven Life doesn't require exams and is comparably inexpensive. Ethos will insure older applicants who answer basic health questions. Plenty of other insurers offer no-exam life insurance to potential policyholders.

The most important thing to remember is that benefits vary by policy and insurer. Shop around for whatever life insurance companies suit your specific needs -- like the best cheap life insurance companies -- which typically offer unique, little-known perks.