Living Benefits of Life Insurance
Definition - What does Living Benefits of Life Insurance mean?
Living benefits of life insurance are the benefits that a life insurance policyholder can capitalize on while they are still alive. These benefits often translate to a portion of the actual cash value of the policy, but they can sometimes amount to its entire value.
They are also known as accelerated benefits.
Insuranceopedia explains Living Benefits of Life Insurance
Living benefits can be extremely useful if the policyholder experiences a catastrophic illness and requires expensive treatment or care. However, if the policyholder draws on funds from their life insurance while they are still alive, the beneficiary of the policy will receive a reduction in the death benefit.