AWG INSURANCE GUIDE

Living benefits

Coverage that may help during a qualifying serious illness.

What it is

“Living benefits” usually refers to accelerated death benefit riders on a life insurance policy. If the insured meets the policy’s definition of a qualifying terminal, chronic, or critical illness, the policy may allow access to part of the death benefit while the insured is alive. This is not health insurance, disability insurance, or long-term-care insurance.

Policy features, eligibility, and benefits vary by carrier, state, and underwriting.

Often considered by

Income earners
Families concerned about serious illness
People wanting life and illness protection together

How it works

The qualifying conditions, medical evidence, available percentage, fees, and payment method are defined by the specific policy and rider.

Money accessed early normally reduces the death benefit left for beneficiaries and may reduce cash value.

An accelerated payment can affect taxes or eligibility for public assistance, so policyholders may need tax or benefits advice before using it.

Questions to consider

Which illnesses or conditions qualify
How much of the benefit can be accelerated
Whether the rider has fees or an additional premium
Effect on beneficiaries, taxes, and needs-based benefits

PERSONAL QUOTE REQUEST

Let’s talk about your living benefits needs.

Answer a few relevant questions so we can prepare for your conversation.

(405) 254-7977 insurance@abundantworksgroup.com