Living benefits, explained.

Life insurance usually pays your family after you pass away. Living benefits let you use part of that same policy while you are still alive, if a serious illness strikes. They can turn a death benefit into help when you need it most.

What living benefits are

Living benefits are features, usually called accelerated death benefit riders, that let you pull a portion of your death benefit early under certain conditions. Instead of the full amount going to your family later, you can access some of it now to cover care and bills. The money you use is subtracted from what your family receives.

The common types

Most living benefits fall into three buckets, though the exact terms vary by policy.

• Terminal illness: access part of the benefit if you are diagnosed with a limited life expectancy.
• Chronic illness: access funds if you cannot perform certain daily activities, such as bathing or dressing.
• Critical illness: access funds after a major event like a heart attack, stroke, or cancer diagnosis.

Some riders are included at no extra cost, and others carry a fee or reduce the payout when used. What is offered depends on the policy and the carrier.

Why they matter for veterans

A serious illness brings costs that pile up fast, from treatment to time off work. Living benefits give you a way to use your own coverage to steady the household during that time, without waiting for a claim later. For many families, a term policy that includes these riders offers strong protection at a low price.

What to check before you rely on them

Read the details before you count on a living benefit. Confirm which illnesses qualify, whether the rider costs extra, how much you can access, and how using it affects the final payout. Terms differ from one policy to the next, so compare carefully. A licensed life insurance agent can walk you through what a policy actually includes.

Frequently Asked Questions