Three hidden ways you could reap value from your life insurance policy before you pass away

When was the last time you reviewed your life insurance documents? Learn three hidden ways you could reap value from your policy without making a claim.

When you take out life insurance, you do this to benefit your family, not yourself.

After all, your family could receive a tax-efficient life insurance payout upon your death, which may enable them to keep enjoying their lifestyle without financial worries being compounded with grief.

Once you signed the dotted line on your life cover, you may have put the documents away and forgotten about them entirely. However, in actual fact, many life insurance policies carry additional benefits that could bring value to your life over the years to come.

Indeed, Royal London research published by Money Marketing shows only 16% of people are aware that their life cover agreement could provide more than just a payout.

Crucially, these benefits can often be used without the policy holder ever having to make a claim; they can act as ongoing perks that begin the day you sign up to a new agreement.

Read on to find out three hidden benefits that could ensure you reap value from your life insurance policy over the coming years.

  1. A terminal illness benefit could offer you significant peace of mind

One common feature included in some life insurance agreements is a terminal illness benefit.

Of course, life insurance claims are normally made after a person has passed away. Yet with a terminal illness benefit, you could claim on your policy before your death in order to help make arrangements with your family.

Usually, a terminal illness benefit specifies that you are given a medical prognosis of 12 months or fewer.

While this unthinkable situation will hopefully never become your reality, it could be comforting to know that your life cover may help pay for essentials, such as your funeral, well in advance of your death.

  1. Private check-ups and second medical opinions may help you keep on top of your health

According to the Money Marketing report, some life insurance packages include rolling medical benefits.

These might cover:

  • Private GP appointments once or twice a year
  • Second opinions on medical diagnoses from private practitioners.

As you progress into your later years, you might be choosing to take your health more seriously – and using these value-added benefits could cost you nothing, as you’re already paying the premiums that provide them.

Knowing about these benefits could motivate you to see a doctor regularly, even if just for an “MOT” that offers an overview of your health situation.

It could be prudent to revisit your life cover policy and see if you could reap value from any private medical benefits provided.

  1. Counselling benefits might help you manage your mental health

While discussing your mental health has become more socially acceptable in recent years, it can still be extremely challenging for some to open up.

Indeed, saddening research from the Priory Group reveals 40% of men say they never discuss their mental health, with 36% of participants saying they “don’t want to burden anyone” and 14% saying “I have no one to talk to”. Plus, Health Assured reports 1 in 5 women has a mental health disorder.

If you often feel overwhelmed by your mental health, counselling can be an amazing step to take.

Unfortunately, many people may avoid counselling because it could be considered a “non-essential” expense, with the average therapy session costing between £50 and £80 an hour, Private Practice Hub reports.

Happily, you may not be aware that some life insurance policies carry counselling benefits – meaning you could make use of free therapy sessions and improve your mental health as the years go by.

Discussing protection with a Kellands financial planner can help you make the most of your cover

Worryingly, a report from Insurance Times reveals that of the 7% of people who reduced their insurance provision between October 2022 and January 2023 to help with the cost of living crisis, 43% cancelled their cover altogether.

It is crucial to understand that by forgoing insurance, your wealth could be exposed to unnecessary risk if you were to pass away or become seriously ill.

Fortunately, reading about the potential perks your protection may carry might make you think twice about cancelling policies.

Indeed, it isn’t just life insurance that can offer ongoing benefits – other forms of protection, including critical illness cover and income protection, may provide additional services that can be utilised even without making a claim.

No matter if you have an existing package of protection or are looking to put one together, talking through your agreements with a Kellands financial planner can help you get more from your cover.

In any case, reviewing your protection circumstances with a professional can not only help ensure your wealth is shielded from emergencies where possible, but can also add value to your life today. That way, you can move forward with secure peace of mind, knowing you’re making the most of the protection you hold.

Get in touch

To discuss your protection circumstances with a qualified professional, email us at, or call 0161 929 8838.

Please note

This article is for general information only and does not constitute advice. The information is aimed at retail clients only.

Note that life insurance plans typically have no cash in value at any time and cover will cease at the end of the term. If premiums stop, then cover will lapse.

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