Life Insurance 101
What are living benefits?
Living benefits — also called accelerated death benefits — let you access part of your death benefit while you're alive, typically when facing a serious illness or injury.
Types of living benefits
- Terminal illness: with a limited life expectancy, you may access part of the benefit early to cover bills, debts, or special expenses;
- Chronic illness: if you can't perform daily activities like bathing or dressing, some policies allow access for care;
- Critical illness: some policies pay on diagnosis of conditions like heart attack, stroke, or cancer;
- Long-term care: some include a rider to access the benefit for ongoing care.
How they work
Living benefits are usually added as riders — sometimes at no extra cost, sometimes for an additional premium. The amount you can access depends on your policy and the severity of the illness, and using them generally reduces the death benefit your beneficiaries later receive.
The bottom line
These benefits can offer crucial relief in a difficult moment, letting you manage expenses while still living. It's worth reviewing what living benefits a policy includes before you commit.
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