Living Benefits

Living benefits are provisions or riders in a life insurance policy that allow the policyholder to access a portion of the death benefit while still alive, typically triggered by a qualifying health event such as a terminal illness (life expectancy of 12–24 months or less), chronic illness (inability to perform activities of daily living), or critical illness (heart attack, stroke, cancer, etc.). Living benefits are increasingly included as standard features — rather than optional riders — on many permanent policies. The advance reduces the remaining death benefit. Living benefits provide significant financial relief during a health crisis without the need to surrender the policy or take a policy loan.