2. Early Access to Funds When Facing a Chronic Illness

Certain whole life policies offer the policyholder an option of early access to retirement funds if they are facing a chronic illness. To qualify, it is necessary for this illness to stop the policyholder from performing two of the six activities associated with daily living. This benefit allows policyholders to access the money to pay for medical and living expenses, while leaving any unused money from the policy for their dependents after death.
Enacting this option will limit the money a dependent receives, which means it is not a complete substitute for long-term care insurance. However, sometimes insurance does not cover all necessary expenses, and this option can serve as a way of paying additional expenses.