Life Insurance with Living Benefits: What You Need to Know

connecttocoverage
Sep 9
2 min read

Life insurance is often thought of as a safety net only after death. But what if you could use your policy while you’re still alive? That’s exactly what living benefits life insurance provides. These policies give you access to part of your death benefit if you’re diagnosed with a qualifying illness or condition.

What Are Living Benefits?

Living benefits are riders (policy add-ons) that allow you to access your policy’s payout while still alive. They’re designed to help cover major expenses when life takes an unexpected turn.

Types of Living Benefits

1. Critical Illness Rider

Covers severe conditions like cancer, heart attack, or stroke.
Provides a lump sum to help pay medical bills or household expenses.

2. Chronic Illness Rider

For policyholders unable to perform basic daily activities (bathing, eating, etc.).
Helps cover long-term care costs.

3. Terminal Illness Rider

Provides early access to death benefit if diagnosed with less than 12–24 months to live.
Ensures you can manage end-of-life expenses or create lasting memories with loved ones.

Benefits of Living Benefits

Financial Relief: Cover medical costs without draining savings.
Flexibility: Funds can be used for treatment, caregiving, or household needs.
Peace of Mind: Provides support during life’s most difficult times.

Table: Standard vs Living Benefits Policy

Feature	Standard Life Insurance	With Living Benefits
Pays Only After Death	✅ Yes	❌ No
Covers Critical Illness	❌ No	✅ Yes
Provides Long-Term Care Support	❌ No	✅ Yes
Early Payout for Terminal Illness	❌ No	✅ Yes

Real-Life Example

A 45-year-old policyholder is diagnosed with cancer. With a critical illness rider, she accesses $100,000 of her life insurance benefit. This money covers treatment costs and allows her to focus on recovery without financial stress.

Living benefits turn life insurance into more than just a death benefit. It becomes a lifeline during your lifetime. Whether for medical bills, caregiving, or end-of-life planning, these riders provide protection when you need it most.

At Connect to Coverage, we specialize in policies with living benefits that give you financial flexibility. Request your customized quote today.