Living Benefits
Some life insurance policies may include benefits you can use while living.
Life insurance is often thought of as protection after death. Some policies may also include optional accelerated benefit riders, sometimes called living benefits.
How accelerated benefit riders may work
When available, these riders may allow a portion of the death benefit to be accessed early after a qualifying chronic, critical, or terminal illness. Benefits are subject to policy terms, eligibility requirements, claim documentation, and carrier approval.
Important limitations
Accelerated benefits generally reduce the remaining death benefit payable to beneficiaries. They may also have tax or public-assistance consequences, so consumers should consult qualified tax, legal, or benefits advisors for guidance.
What living benefits are not
Living benefit riders are not health insurance, disability insurance, or long-term care insurance. They should not be used as a substitute for those coverages.