Living Benefits

Living Benefits are provisions in a life insurance policy that allow the policyholder to access a portion of the death benefit while they are still alive, typically in the event of a critical illness, chronic illness, or terminal illness.

When an insured individual is diagnosed with a qualifying condition, they can request a portion of their death benefit as a living benefit. This payment can help cover medical expenses, lost income, or other financial needs during their illness.

Qualifying illnesses often include serious conditions such as cancer, heart attack, stroke, or other chronic and terminal illnesses as defined in the policy.

Generally, the funds received from Living Benefits are not subject to income taxes. However, it's recommended to consult a tax professional for personalized advice.

Yes, any amount taken as a Living Benefit will reduce the total death benefit available to beneficiaries at the time of the policyholder's death.

No, not all life insurance policies have Living Benefits. It's important to check your specific policy or consider adding this feature when purchasing insurance.

To apply for Living Benefits, you generally need to provide proof of diagnosis through medical documentation and submit a claim to your insurance company.

Living Benefits can be used for any purpose such as medical bills, mortgage payments, or daily living expenses. However, specific usage restrictions may apply under certain policies.

Using Living Benefits may or may not affect your future insurability. It's best to discuss your specific situation with an insurance agent.

The time frame can vary by insurer but is typically within 30 to 60 days after submitting a complete application with required documentation.