Published: May 7, 2025 • Category: Life Insurance
Most people think of life insurance as a safety net for their loved ones after they pass. In fact, certain policies can also help you during your lifetime through what are known as living benefits or accelerated death benefit riders.
What Are Living Benefits?
Living benefits allow you to access a portion of your life insurance death benefit while you are still alive if you experience a qualifying event. These riders are often included at no extra cost on many modern life insurance policies and can provide a vital financial lifeline during a serious health crisis.
Types of Living Benefit Triggers
Terminal Illness
If a physician certifies that you have a terminal illness with a life expectancy of 12 to 24 months, most living benefit riders allow you to access up to 90% of your death benefit. The funds can be used for any purpose — medical bills, bucket-list travel, or paying off a mortgage.
Chronic Illness
A chronic illness rider activates when you are unable to perform two or more activities of daily living (such as bathing, dressing, or eating) for at least 90 days. This can help cover long-term care costs or in-home assistance that Medicare often does not cover.
Critical Illness
Events like a heart attack, stroke, or cancer diagnosis can trigger a critical illness rider. A lump-sum advance from your death benefit can help you focus on recovery rather than financial stress.
How Do Living Benefits Affect the Death Benefit?
Any amount you access through living benefits reduces the death benefit your beneficiaries receive. If you draw $100,000 from a $500,000 policy, your beneficiaries receive $400,000 when you pass — minus any applicable fees or interest charges.
Who Should Consider a Policy with Living Benefits?
Living benefits are particularly valuable for people who do not have robust long-term care coverage or significant savings to cover a medical emergency. They add flexibility to a life insurance policy that can serve both your current and future needs.
Learn More
Insure USA, Inc. can help you find life insurance policies with living benefits that fit your budget and health profile. Call (321) 235-7377 or request a free life insurance quote from our Orlando office.