Living Benefits: Protection While You’re Still Alive
Many life insurance policies offer living benefits, allowing you to access part of your death benefit if you face certain serious health conditions. Yes, that is correct. You do not have die to receive a payout. This money can be used for:
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Types of Living Benefits
Terminal Illness
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Applies if you’re diagnosed with a condition expected to result in death within a set period (often 12–24 months, depending on the policy).
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Lets you access a large portion of your policy’s death benefit to use however you wish.
Critical Illness
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Covers severe health events like heart attack, stroke, cancer, or organ failure (exact list varies by policy).
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Provides a lump sum that can be used for treatment, recovery costs, or replacing income during time off work.
Chronic Illness
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Applies if you can’t perform two or more activities of daily living (such as bathing, dressing, eating) without assistance, or you require substantial supervision due to cognitive impairment.
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Funds can help cover long-term care, in-home assistance, or facility costs.
Policy Loans
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Some life insurance policies such as whole life or universal life, include a cash value component that grows over time tax-deferred. ​
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You can borrow against your policy, whether you would like to make withdrawals for emergencies, opportunities, or retirement income.