Living Benefits Of Life Insurance

What Does Living Benefits Of Life Insurance Mean?

Living benefits of life insurance are the benefits a policyholder can access while they are still alive. These benefits often represent a portion of the policy’s actual cash value but can sometimes equal its entire value.

Living benefits are also referred to as accelerated benefits. Not every policy includes them as a built-in feature, so it’s worth checking which insurers offer them when comparing the best life insurance companies.

Insuranceopedia Explains Living Benefits Of Life Insurance

Living benefits can be invaluable if the policyholder faces a catastrophic illness and needs costly treatment or care. That trade-off is why buyers with an existing diagnosis often look closely at life insurance for chronic illness options, since being able to use the money during treatment is sometimes more important than the size of the payout left for the beneficiary. However, if the policyholder accesses funds from their life insurance during their lifetime, the death benefit paid to the beneficiary will be reduced.