Living Benefits of Life Insurance


The death benefit is the core reason to own life insurance. It provides cash to loved ones after you die. But did you know that many policies also offer “living benefits”? A few examples include:

  • Cash for emergencies or opportunities
    Permanent life insurance policies allow you to accumulate cash on a tax-deferred basis. Accumulated cash can be accessed through policy loans or withdrawals to help in an emergency, to take advantage of an opportunity or even to supplement your retirement income.
  • Accelerated death benefits
    Many policies contain a provision that allows a terminally ill person to collect a portion of his or her policy’s death benefit while that person is still alive. The money can be used to get one’s family finances in order, to pay for uncovered medical expenses, or simply to do certain things for your family or friends while you still can.