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Living Benefits

Living Benefits are features of some life insurance policies allowing policyholders to access part of the death benefit while still alive, often due to illness.

What are Living Benefits?

Living Benefits, sometimes referred to as accelerated death benefits, are features included in certain life insurance policies, like Whole Life or Indexed Universal Life Insurance, allowing policyholders to access a portion of their death benefit while they are still living. This feature is typically activated when the policyholder is diagnosed with a qualifying serious illness, chronic illness, or terminal condition.

For example, if a policyholder is diagnosed with a terminal illness with a life expectancy of less than a year, they may be eligible to receive a percentage of the death benefit upfront. This financial support can help cover medical expenses, care costs, or other needs during a difficult time. Many policies also offer Living Benefits if the insured person needs long-term care or becomes permanently disabled.

Living Benefits provide peace of mind to policyholders and their families, allowing them to focus on recovery or quality of life without the added stress of financial strain. It’s an added layer of security that makes life insurance more than just a benefit for heirs, enabling the insured to utilize funds during their lifetime.

These benefits vary based on the terms of the policy, and the percentage accessible often depends on the policy type and the insurer. It is advisable to discuss options with a financial professional when considering a life insurance policy that includes Living Benefits.