Living Benefits

How do they work?

Life can change in an instant—but living benefits make sure you don’t face it alone. If illness or injury strikes, you can use your life insurance while you’re still here—to focus on healing, family, and what truly matters. Because protection isn’t just for the end of life—it’s for the moments that mean the most.

Types of Living Benefits

Living benefits are financial protections built into certain life insurance policies that allow you to access a portion of your death benefit while you’re still alive—usually during a serious illness, injury, or other major life event. These benefits can help cover medical bills, replace lost income, or ease financial stress when you need it most.

Critical Illness Benefit

Provides funds if you’re diagnosed with a covered condition such as cancer, heart attack, or stroke.

Chronic Illness Benefit

Offers access to your benefit if you can’t perform two or more activities of daily living (like bathing or dressing) without assistance.

Allows early access to your benefit if you’re diagnosed with a terminal illness and have a life expectancy of 12–24 months or less (depending on the policy).

Terminal Illness Benefit

FAQs

What are living benefits?
Living benefits let you access part of your life insurance policy’s death benefit while you’re still alive if you experience a serious illness, injury, or condition that qualifies under your policy.

Do I have to pay the money back?
No. The amount you receive is taken out of your policy’s death benefit, so your beneficiaries will receive the remaining balance when you pass away.

What qualifies as a living benefit event?
It depends on your policy, but typically includes a terminal illness, chronic illness, critical illness (like heart attack, stroke, or cancer), or long-term care needs.

Does every life insurance policy include living benefits?
Not always. Some policies include them automatically, while others offer them as optional riders for an additional cost.

What can I use the money for?
You can use the funds however you choose—medical bills, replacing lost income, paying your mortgage, or simply maintaining your quality of life.

How much of my death benefit can I access?
Most insurance companies allow access to 25%–90% of the death benefit, depending on the illness and policy terms.

Will using my living benefits affect my premiums?
Your premiums generally stay the same, but the available death benefit is reduced by the amount you use.

How do I claim a living benefit?
You’ll need to submit a claim form and medical documentation to your insurance provider. Once approved, the funds are paid directly to you—usually as a lump sum.

Are living benefits taxable?
In most cases, the funds are tax-free, but it’s always smart to consult a tax advisor for your specific situation.

Why are living benefits important?
They turn your life insurance into a safety net for today—helping you protect your family and your finances when life takes an unexpected turn.

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