Living Benefits Life Insurance
Protect yourself as well as your loved ones with riders that provide benefits while you’re still alive.
What Are Living Benefits?
Living benefits (also called accelerated benefit riders) are optional features on life insurance policies that allow you to access a portion of your death benefit while you’re still alive if you experience certain health events. Common triggers include terminal illness, chronic illness, critical illness, or the need for long-term care. Many modern life insurance policies now include some of these riders automatically or for an additional cost【336388266394797†L258-L340】.
Who Should Consider Living Benefits?
Living benefits can be a smart addition for:
- Families concerned about paying medical bills or covering household expenses if a breadwinner becomes seriously ill.
- Individuals without long-term care insurance who want a safety net for future care needs.
- People looking for a policy that provides flexibility beyond the traditional death benefit.
- Those with a family history of critical illnesses who want to protect their finances.
Types of Living Benefit Riders
- Terminal illness rider: Pays out a portion of the death benefit if you’re diagnosed with a terminal illness and expected to die within a specified period (often 12 to 24 months).
- Chronic illness rider: Provides funds if you’re unable to perform a certain number of activities of daily living (ADLs) such as bathing or dressing.
- Critical illness rider: Offers a lump sum for specific diagnoses like heart attack, stroke or cancer.
- Long-term care rider: Helps cover the cost of assisted living, nursing home care or in-home care.
- Waiver of premium: Waives future premium payments if you become disabled and can’t work.
Pros & Cons
- Access to cash when needed: Living benefits can provide crucial financial support during an illness, helping pay medical bills or maintain your lifestyle.
- Flexibility: Many riders are included at no additional cost, while others may require a fee. You choose which riders matter most to you.
- Reduced death benefit: When you use a living benefit, the amount paid out to your beneficiaries is reduced by the amount you receive.
- Increased premium: Adding riders may increase your policy’s cost. It’s important to evaluate the trade‑off between premium and potential benefits【336388266394797†L258-L340】.
See If Living Benefits Make Sense for You
Our licensed brokers can walk you through the different living benefit options and help you decide whether to include them in your policy.
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