Living benefit rider

Living benefit riders let you access your life insurance funds immediately if you’re diagnosed with a serious health condition covered by your rider, helping to cover you and your family’s expenses.

What are living benefit riders?

Finding a life insurance policy is one of the most crucial steps in planning for your family’s financial future. No policy is one-size-fits-all, which is why most insurers offer life insurance riders. These are optional features you can add to your life insurance to help personalize your coverage.

One of the most common riders is the living benefit rider, also known as accelerated death benefit riders or accelerated benefit riders. Living benefit riders let you access your life insurance funds immediately if you’re diagnosed with a serious health condition covered by your rider, helping to cover you and your family’s expenses. Here’s what you need to know about supplementing your whole or term life insurance with a living benefit rider.

Understanding life insurance with living benefits

Serious health conditions can affect your ability to work and put financial pressure on your family. The living benefit rider is designed to help you get through tough times by paying out some or all of the death benefit, right when you and your loved ones need it. You can use the payment as extra income or for any medical expenses, debts, or end-of-life costs.

You can add living benefit riders to a new life insurance plan, or it may be possible to add them to your current policy. While adding a rider comes with an additional cost, the protection it provides can make a big difference when you need it.

The different types of living benefits insurance riders

Living benefits insurance riders can pay for certain end-of-life expenses. Some of these riders may be included at no added charge, while others require a premium. There are various living benefit riders, but here are some of the common ones:

  • Terminal illness riders: Also called an accelerated death benefit rider, a terminal illness rider may be included in your policy for free or at a low cost. A terminal illness rider lets you access an advance on your policy in a situation where recovery from an illness is unlikely.
  • Chronic illness riders: With a chronic illness rider, you can pay for long-term care and other costs if you’re diagnosed with a chronic illness. However, the rider must be active before you’re diagnosed.

Benefits of living benefits insurance riders

Adding a living benefit rider to a policy is easy, convenient, and affordable for many policyholders. With an accelerated benefit rider, you can:

  • Access funds while you're still living

    Access funds while you're still living

  • Create a customized life insurance policy

    Create a customized life insurance policy

  • Add riders to a new or existing life insurance policy

    Add riders to a new or existing life insurance policy

How much living benefits insurance do I need?

The ideal amount of whole or term life insurance – including living benefits – is different for everyone. When considering your needs, think about all your financial obligations. If you were to pass away or could no longer provide any income to make ends meet, what would your loved ones still need to pay off? For most families, this includes:

  • Debts like mortgages, credit cards, and college loans
  • Expenses for your children or other dependents
  • Your medical bills and end-of-life expenses
  • An extra financial cushion to maintain the same quality of life

You’ll want enough combined coverage to help your family meet these needs if you become terminally ill or die suddenly. Write down these expenses and give us a call – we’re happy to help you figure out the right amount of insurance to support your family.

Living benefit riders through eFinancial

At eFinancial, we provide a range of living benefit riders from over 20 leading life insurance companies, along with personalized guidance from our team of life insurance agents. We’re here to help you build a customized plan that will take care of you and your family, no matter what comes your way.

You’ve got questions about living benefit life insurance. We’ve gotanswers.

Wondering whether a living benefits rider is the right choice for you? Here are the answers to some of our most commonly asked questions.

Get your quote online, or talk to one of our agents at 800-957-9525.