Life Insurance
Modern life insurance isn't just for after you're gone. With Living Benefits, you can enjoy multiple layers of protection while you're still alive — getting the most out of a single policy to fully protect your family's financial security.
What is Life Insurance with Living Benefits?
The primary function of traditional life insurance is to pay a tax-free death benefit to your beneficiaries upon your passing, enabling your family to maintain their standard of living, pay off the mortgage, and cover your children's education. However, modern life insurance has evolved significantly, adding Living Benefits riders.
Living Benefits allow you to access a portion of your death benefit early under certain conditions while you're still alive. This means that when you face a serious health crisis, you don't have to drain your retirement savings, take out a second mortgage, or borrow from loved ones — you get the financial support you need to get through life's most difficult moments.
In addition, many permanent life insurance policies (such as Whole Life, Universal Life, and Indexed Universal Life) accumulate cash value. This cash value can serve as an emergency fund, supplemental retirement income, or college savings, providing extra financial flexibility.
Death Benefit Protection
Upon the insured's passing, beneficiaries receive an income-tax-free death benefit, protecting the family's financial future and maintaining their quality of life.
Accelerated Living Benefits
If diagnosed with a critical, chronic, or terminal illness, you can access a portion of the death benefit early to cover medical expenses, living costs, and care fees.
Cash Value Accumulation
The cash value of permanent life insurance grows on a tax-deferred basis and can be borrowed against or withdrawn for retirement, education, or emergencies.
Living Benefits Explained
Living Benefits typically cover three main scenarios, providing financial support during a health crisis:
Terminal Illness
If diagnosed with a terminal illness with a life expectancy of 12 to 24 months or less, you can access a large portion of your death benefit early (typically 50%–90%) to cover medical expenses, fulfill bucket-list wishes, or make arrangements for your family.
Critical Illness
Upon diagnosis of a major critical illness such as a heart attack, stroke, cancer, or kidney failure, you can access a portion of your death benefit early. This money can cover high medical costs and replace lost income during recovery, so you can focus on getting better.
Chronic Illness
If illness or injury leaves you unable to independently perform 2 or more of the 6 Activities of Daily Living (ADLs), or you require substantial supervision, you can access your benefit early to pay for long-term care or in-home assistance.
Core Advantages of Life Insurance
- Death benefit paid to beneficiaries free of income tax
- Living Benefits provide financial protection while you're alive — no need to wait until death
- Access funds early upon a critical illness diagnosis to handle medical expenses
- Receive assistance for long-term care costs when a chronic illness limits daily activities
- Access a large payout early upon a terminal illness diagnosis
- Cash value in permanent policies grows steadily on a tax-deferred basis
- Cash value can be borrowed against for emergencies or supplemental retirement income
- Death benefit passes to the next generation tax-free for effective estate planning
- Fixed premiums unaffected by age or health changes (whole life insurance)
- Can serve as business protection for business owners, protecting continuity of operations
Who Should Consider Life Insurance?
Types of Life Insurance
Term Life Insurance
Provides coverage for a fixed period (e.g., 10, 20, or 30 years) at a relatively low premium. Ideal for young families who need substantial coverage on a budget. The death benefit pays out if you die during the term; coverage ends when the term expires.
Whole Life Insurance
Provides lifelong coverage with fixed premiums and cash value that grows at a guaranteed rate. The most traditional form of permanent insurance, ideal for those seeking guaranteed stability and a cash value component.
Universal Life Insurance (UL)
Provides lifelong coverage with flexible premium payment options and cash value that grows at current interest rates. Policyholders can adjust premium amounts and timing within certain limits — more flexible than whole life.
Indexed Universal Life (IUL)
Cash value is linked to a stock market index (such as the S&P 500), capturing upside growth potential while a floor (typically 0%) protects against market losses. One of the most popular retirement planning tools available today.