Life insurance that helps you while you're living? That's the idea behind living benefits — riders that let you access part of your death benefit early if you face a qualifying serious illness.
What are living benefits?
Also called accelerated death benefit riders, they allow you to tap a portion of your coverage early if you're diagnosed with a qualifying condition — turning a death benefit into a financial lifeline when you need it most.
The three common types
- Terminal illness: Access funds if diagnosed with a terminal condition (often <12–24 months life expectancy).
- Chronic illness: Help if you can't perform daily living activities (bathing, dressing, eating).
- Critical illness: A lump sum on diagnosis of conditions like heart attack, stroke, or cancer.
How you can use the money
However you need — medical bills, mortgage, lost income, experimental treatment, or simply time with family. There are no restrictions on how the accelerated funds are spent.
Living benefits turn life insurance from "protection for them" into "protection for all of us" — including you.
What to know
- Many carriers now include basic living benefits at no extra cost.
- Any amount you accelerate reduces the final death benefit paid to beneficiaries.
- Definitions and payout amounts vary by carrier — another reason to compare.
When you compare quotes, look for policies that include living benefits — it's significant added value for the same premium.