What are the advantages of living benefits?

Most people buy life insurance because they want to protect their family members from additional financial and emotional stress in the event of their passing. But did you know that your life insurance can help you take care of the costs associated with a terminal, chronic, or critical illness? 

Policies with living benefits can help mitigate the effects of these events on your family and finances. Let’s look at living benefits and how they can protect your family. 

What is a living benefit?

A living benefit is simply a portion of an insurance policy that can be accessed while the insured party is still living. This portion varies by size or percentage based on the insurance provider and the coverage selected. It can often be called a “rider.” These riders allow you to customize your policy based on your needs. 

The types of living benefits or riders include things like terminal illness coverage. This kicks in if you are given a terminal diagnosis with a life expectancy from six months to two years (depending on your provider and coverage). These benefits can help you pay for end-of-life care and other expenses related to the illness. 

There is also an option to add coverage for illnesses that aren’t terminal but are still very expensive and shorten life expectancy. This would help you cover your mortgage or car payment if you can’t work for a while due to a condition like a heart attack or stroke.  

Another benefit you can add is long-term care services. These benefits can help you access assisted living or home health care, meaning your retirement fund can go further. 


When you have a living benefit, you can receive cash values or accelerated death benefits while still alive. These benefits can be used for anything from paying off debts to providing financial assistance during a missed work period due to illness or injury. Additionally, some policies provide access to additional discounts on healthcare services and products that can help reduce the cost of medical care.

Ultimately, living benefits provide you with peace of mind and financial security if something unexpected happens. By having access to cash values or additional benefits while still alive, you can be assured that your family won’t be left struggling to cover the costs associated with an illness or accident. Life insurance is an invaluable asset for anyone looking to protect their family’s financial future.