Access your life insurance benefits when you need them most - while you're still living
Life Insurance Has Living Benefits
Life insurance policy with Living Benefits included
Critical, chronic, or terminal diagnosis
Receive up to 90% while you're still living
Use funds for treatment, bills, or living expenses
Living Benefits, also known as Accelerated Death Benefits, allow policyholders to access a portion of their life insurance death benefit while they're still alive if they're diagnosed with a qualifying serious illness or condition.
Traditional life insurance only pays out after the policyholder passes away. But what if you need financial help during your lifetime? Living Benefits bridge that gap, providing financial support when you face critical, chronic, or terminal illnesses.
Instead of waiting until death to receive benefits, you can access funds to pay for medical treatments, cover living expenses, maintain your lifestyle, or spend quality time with family during difficult times.
Understanding your options for accessing benefits during your lifetime
Access funds if diagnosed with a life-threatening condition
Typical Payout: 25% to 50% of death benefit
Survival Period: Usually 14-30 days after diagnosis
Support for long-term care needs and daily living assistance
Typical Payout: Up to 2% per month (varies by policy)
Use For: In-home care, nursing home, assisted living, medical equipment
Immediate access when life expectancy is limited
Typical Payout: Up to 95% of death benefit
Processing: No waiting period - fast approval
Use For: Experimental treatments, end-of-life care, quality time with family, paying off debts
You're diagnosed with a qualifying critical, chronic, or terminal illness by a licensed medical professional.
You or your representative submit a claim with required medical documentation to your insurance carrier.
The insurance company reviews your claim to verify it meets the policy's qualifying conditions.
Once approved, you receive the accelerated benefit payment to use as you see fit—no restrictions.
See how living benefits made a difference for real families
"When my husband was diagnosed with cancer at 52, we were devastated. Thanks to the Critical Illness living benefit, we accessed $75,000 from his $300,000 policy. This paid for experimental treatment not covered by insurance and allowed me to take time off work to be with him during chemotherapy. He's now in remission, and we're so grateful we had this option."
"After a stroke at 45, I needed help with basic daily activities. The Chronic Illness benefit provided monthly payments that covered in-home care assistance. This allowed me to stay in my own home during recovery instead of going to a nursing facility. My family didn't have to drain savings or sell our house."
"When Mom was diagnosed with terminal illness, the Terminal Illness benefit gave us the gift of time. We accessed her life insurance benefits immediately and used them to take a family trip, make her comfortable at home, and pay off her medical bills. She passed peacefully knowing we were taken care of."
Many policies include living benefits at no additional cost as a standard feature. Some may have a small administrative fee when you access the benefit, but there's typically no extra premium.
The amount you receive as a living benefit is deducted from your policy's death benefit. For example, if you have a $500,000 policy and receive $100,000 as a living benefit, your beneficiaries would receive $400,000 upon your death.
No. Once you receive the living benefit payment, you can use it for any purpose—medical bills, daily expenses, travel, paying off debt, or anything else you choose.
Processing time varies by carrier and benefit type. Terminal illness claims are often the fastest (days to weeks), while chronic illness may take longer. Critical illness typically processes within 2-4 weeks after providing required documentation.
It depends on your specific health condition. Many people with managed health conditions can still qualify. Our advisors can help you explore your options and find carriers that may approve your application.
Generally, accelerated death benefits for terminal or chronic illness are not taxable under IRS guidelines. However, tax situations can vary, so we recommend consulting with a tax professional.
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