Life insurance with living benefits 101

Life insurance is often used to help financially protect your loved ones after you're gone, but one of the lesser-known advantages of life insurance is that some policies may also provide living benefits. These features can offer additional flexibility by allowing you to access a portion of your policy's death benefit while you're still alive. Understanding how living benefits work can help you make more informed decisions about the type of life insurance coverage that may be right for you.

What are living benefits of life insurance?

Living benefits can give policyholders access to a portion of their life insurance benefit while they are still living if certain qualifying conditions are met. These features may be available through a living benefit rider or an accelerated death benefit rider or endorsement. If a policyholder is diagnosed with a qualifying illness or experiences a health event, these features may allow access to a portion of the policy's death benefit to help cover medical expenses, replace lost income, or manage other financial needs. Along with helping protect your beneficiaries, life insurance with living benefits can extend the value of your policy beyond the traditional death benefit.

How do living benefit riders work?

Living benefit riders are additional features that can be added to certain life insurance policies, typically for a fee, or may be built into the policy when you purchase your coverage. Once included, the rider becomes part of your policy and explains when you may be able to access part of your benefit. These situations are typically tied to serious health events such as a terminal illness, chronic illness, or critical illness. If you experience a qualifying event, you can request access to a portion of your policy's benefit while it is still active. The amount used is typically deducted from the total death benefit that would go to your beneficiaries. Since the exact rules vary by insurer and policy, it's important to review your coverage details to understand how your specific living benefit rider/endorsement works.

Should you consider life insurance with an accelerated death benefit?

Life insurance with an accelerated death benefit may be a good match if you want added financial protection during serious health events. This includes situations involving a medical event or illness where everyday expenses or medical costs could become difficult to manage. It can offer financial support to help cover needs such as medical bills, household expenses, childcare costs, or lost income, giving you the freedom to decide how to use the money. If you want life insurance that can provide financial support both during your lifetime and for your loved ones in the future, a policy with living benefits may be worth considering. Since different life stages often bring different priorities, meeting with a financial professional can help you find the life insurance policy that helps provide the protection you need.

The advantages of life insurance with living benefits

Serious illness can create financial strain in ways many people don't expect, from ongoing medical costs to changes in daily income. Living benefits can help bridge that gap by making a portion of your life insurance coverage available during your lifetime. This added flexibility can make your policy more versatile when facing unexpected health challenges. Here are some of the key advantages of including living benefits in your coverage:

• Earlier access to funds under qualifying conditions
  Living benefits may allow you to access a portion of your policy's death benefit if you are diagnosed with a qualifying terminal, chronic, or critical illness. This can help you address important financial needs during a challenging time.
• Help with everyday expenses during treatment or recovery
  Living benefits can help cover routine costs like rent or mortgage payments, utilities, groceries, or childcare if you're unable to work due to a qualifying health condition. This added flexibility can help keep day-to-day life more manageable, whether you're focusing on treatment, recovery, or time with loved ones.
• Support for long-term care needs
  Some living benefit features can help cover costs associated with long-term care services, depending on your policy. This may include in-home care or facility care and help reduce the financial burden on you and your family.
• Offering additional peace of mind for long-term planning
  Knowing your policy may offer access to funds during a serious health event can help you feel more prepared for the unexpected. This added layer of protection can help you cover unexpected expenses without relying on savings or taking on additional debt.

Contact North American to learn more about living benefits for life insurance

Life insurance with living benefits can be a valuable part of a broader financial strategy, helping provide added flexibility and support when life doesn't go as planned. North American offers a range of life insurance and annuity solutions designed to support long-term savings goals, protection needs, and retirement planning. If you're exploring the advantages of life insurance and annuities and how they could help strengthen your financial plan, North American financial professionals are here to help you take next steps for creating a more confident financial future.

B6-NA-3-24 REV 8/2026

Living benefits are subject to eligibility requirements.

Texas Residents: Receipt of acceleration-of-life-insurance benefits may affect your, your spouse's or your family's eligibility for public assistance programs such as medical assistance (Medicaid), Aid to Families with Dependent Children (AFDC), supplementary social security income (SSI), and drug assistance programs. You are advised to consult with a qualified tax advisor and with social service agencies concerning how receipt of such a payment will affect your, your spouse's and your family's eligibility for public assistance.

The term financial professional is not intended to imply engagement in an advisory business in which compensation is not related to sales. Financial professionals that are insurance licensed will be paid a commission on the sale of an insurance product.