What are living benefits?
Living benefits are policy provisions that may allow the insured person to access part of the death benefit after a qualifying illness or condition.
Possible qualifying events
Depending on the policy, provisions may relate to terminal illness, chronic illness, or certain critical illnesses. Definitions and eligibility vary.
Important limitations
- Not every policy includes living benefits
- Accessing benefits may reduce the death benefit
- Fees, limits, and tax considerations may apply
- The policy contract controls eligibility
Frequently asked questions
Does every policy include living benefits?
No. These provisions vary by product and carrier.
What conditions may qualify?
Qualifying conditions and definitions are stated in the policy.
Will using a benefit reduce the death benefit?
Usually it may reduce the remaining death benefit, subject to policy terms.
Are benefits taxable?
Tax treatment can depend on the situation. Consult a qualified tax professional.
Living benefits are not available on every policy. Eligibility, limits, charges, and effects on the death benefit vary by contract.