What are living benefits?
Just as the name suggests, living benefits are aspects of a life insurance policy that you can use while you are still alive. Your policy may have an existing feature that functions as a living benefit, or you may want to add living benefit provisions to your policy with a rider.
There are many life insurance products to choose from – so there are also many different types of living benefits. If having living benefits insurance coverages are important to you, I’ll help you choose from a variety of options.
What are accelerated benefits?
Accelerated death benefits are a specific type of living benefit. Usually, this benefit is an add-on to your life insurance policy. It allows a portion of your death benefit to be paid to you in the event of certain circumstances like a terminal illness.
A serious illness like a cancer diagnosis or kidney disease can very quickly drain your finances. Having an accelerated benefits rider in place on your term life policy can help you pay expensive medical bills or long-term care expenses and stay afloat financially. Many people also use the funds to take a dream vacation or make memories with loved ones.
Any accelerated benefits payment is deducted from the death benefit that will ultimately be paid when you pass away. Some policies must be in effect for a certain period of time before you can access this benefit. Additionally, some policies may charge interest on the benefit used.