This is one of the most common questions about living benefits in life insurance we get, so we felt it deserve the number 1 spot. The primary purpose of life insurance is the death benefit feature. In addition having living benefits, or Accelerated Benefit Riders, on your life insurance will allow you to use your life insurance policy while still alive. Should you be diagnosed with a qualifying condition, you could file a claim against your life insurance and accelerate your death benefit. In other words, you could use a portion of the entire life insurance while still alive to help pay medical bills or other expenses. 

This is a good time to mention that in some instances, the way life insurance carriers process living benefits are state-specific. This is especially true for California.

Unfortunately, the answer is NO. More and more companies are starting to add this feature into their products, but not every life insurance company offers living benefits.

In addition, living benefits vary amongst the different life insurance carriers.

We get this question a lot. The answer is NO. Unlike, cash value accumulation, living benefits are available on term insurance as well as permanent plans.

The money is payable directly to you. Even though the payment is triggered by a qualifying medication condition, it is not tied to your health insurance or medical provider. The best part is that you decide how you need to spend the money. You could higher extra help, pay your medical bills, the mortgage payment or simply put food on the table. You are in charge.

No, you don’t. Living benefits are not considered a loan against your life insurance. The money is taken from your death benefit and the option to accelerate it.