Understanding Living Benefits: Life Insurance You Don't Have to Die to Use

For decades, life insurance was purely for final expenses and leaving a legacy. You had to die for the policy to pay out. Today, modern life insurance has evolved to include Living Benefits.

What Are Living Benefits?

Living benefits are riders attached to a life insurance policy that allow you to accelerate a portion of your death benefit while you are still alive if you experience a qualifying medical event.

1. Terminal Illness

If you are diagnosed with a terminal illness with a life expectancy of 12-24 months, you can access a large portion of your death benefit to pay for treatments or fulfill final wishes.

2. Chronic Illness

If you are unable to perform 2 of the 6 Activities of Daily Living (ADLs) — such as bathing, dressing, or eating — or suffer severe cognitive impairment, your policy can provide tax-free funds to help cover care costs.

3. Critical Illness

If you suffer a major health event like a heart attack, stroke, or cancer, living benefits can provide a lump sum to replace lost income or pay off medical bills.

Why You Need It

Medical bankruptcies are a leading cause of financial ruin. A policy with living benefits ensures that a health crisis doesn't turn into a financial crisis for your family.