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Living Benefits

Life Insurance That Can Help While You’re Living

Living benefits let you access part of your life insurance death benefit if you’re diagnosed with a qualifying chronic, critical or terminal illness. We explain how they work and find policies from A-rated financial companies that include them.
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What it is

Protection you may be able to use in your lifetime.

Living benefits, often called accelerated death benefit riders, are features included with or added to many term, whole life and IUL policies. They let you access part of your death benefit early if you meet the policy’s definition of a qualifying illness.

You can use the money for medical bills, lost income, home care or everyday expenses. Any amount you receive reduces the death benefit your beneficiaries will get later. Availability and terms vary by policy and state.

Available on many term, whole life and IUL policies
Covers qualifying chronic, critical or terminal illnesses
Use the money however you need
Amounts received reduce the final death benefit
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Key features

How living benefits work for you

Three types of qualifying events, and the flexibility to use the money where it’s needed most.

Terminal illness

Access funds if you’re diagnosed with an illness expected to shorten your life, as defined by the policy.

Critical illness

Help after a qualifying event such as a heart attack, stroke or cancer diagnosis.

Chronic illness

Support if you can’t perform certain daily activities without help.

Use it your way

Pay medical bills, replace income, cover home care or keep up with the mortgage.

Built into many policies

Often included at no extra upfront cost, or added as an optional rider.

Coverage stays in place

The remaining death benefit still protects your family later.

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Benefits & considerations

The full picture, before you decide

Living benefits add valuable flexibility, but they work differently from health or disability insurance. Here’s an honest look at both sides.

Benefits

Financial help during a serious illness
Flexible use of the funds
Often available at no extra upfront cost
Can reduce the need to drain savings
Remaining coverage still protects your family

Things to consider

Any amount received reduces the death benefit
Illness must meet the policy’s specific definitions
Some riders reduce the payout through a discount or fee
Not a replacement for health, disability or long-term care insurance
Payments may affect eligibility for some government benefits

Why it matters

A serious illness shouldn’t force your family to choose between care and the bills. Living benefits can help when you need it most.

FAQ

Living benefits questions, answered

Still have questions? Book a free consultation and we’ll explain how living benefits work on the policies you’re considering.
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Which policies include living benefits?
Many term, whole life and IUL policies offer them, either built in or as an optional rider. Features vary by company, policy and state, so we’ll compare them for you.
How much of my death benefit can I access?
It depends on the policy and the type of illness. Some policies allow a portion, while others allow a larger share for a terminal illness. The amount you receive reduces the remaining death benefit.
Are living benefit payments taxable?
Accelerated death benefits are often received income-tax-free when they meet IRS requirements, but this depends on your situation. We recommend confirming with a tax professional.
Is this the same as long-term care insurance?
No. Living benefits can help with care costs, but they work differently and usually offer less coverage than a dedicated long-term care policy. We can explain the differences.
Can I add living benefits to a policy I already have?
Sometimes. Some policies allow riders to be added later, while others only offer them at purchase. We can review your current coverage with you.

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