Term Life Insurance Explained—Affordable Protection When It Matters Most
Also known as accelerated benefits, living benefits allow you to access a portion of your life insurance policy’s death benefit while you're still living—if you face certain serious health conditions. It’s an important feature that can ease the financial stress of a medical crisis, long-term care need, or terminal diagnosis.
At Integrity Financial Solutions Group, we help Arizona clients understand and choose life insurance policies that support them not just after death, but during life’s most challenging moments.
Have questions about living benefits? Start with our consultation form.
When Can You Use Living Benefits?
Living benefits typically become available if you experience:
- A terminal illness, with a life expectancy of 6–12 months
- A critical illness, such as cancer, stroke, or heart attack
- A chronic illness that requires long-term care or assistance with daily activities
- Permanent nursing home confinement or similar health impairments
Each policy defines eligibility slightly differently, but we’ll help you understand exactly how and when you can access your benefits.
Not sure what your policy covers? Let’s review it together.
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How Are Living Benefits Paid Out?
If you qualify, your insurance company pays out part of your death benefit early—either as a lump sum or in monthly installments. This can be used for anything from medical bills to household expenses.
The amount you can access typically ranges from 25% to 100% of your total benefit, depending on your policy and condition.
Need help comparing payout options? We’ll make it easy.
How Do You Get These Benefits?
Living benefits are usually offered through a rider—an add-on to a term or permanent life insurance policy. Some riders cost extra, while others are included automatically.
Even if there’s no upfront cost, your insurer may reduce the final death benefit or apply small service charges when the benefit is used.
We’ll help you:
- Understand what’s already in your policy
- Add living benefits to a new or existing plan
- Avoid unexpected reductions in your beneficiary payout
Wondering what your options are?
Schedule your free life insurance review.
Things to Consider Before Using Living Benefits
Using your living benefits can be a lifeline—but it also affects your policy. Here’s what you need to know:
- Reduced death benefit: Any early payout lowers the amount your loved ones will receive later.
- Not a replacement for long-term care insurance: Living benefits help, but they aren’t comprehensive care coverage.
- Tax implications: Most benefits are tax-free, but some situations may affect Medicaid eligibility or create financial reporting needs. We recommend speaking with a tax advisor if you're unsure.
Have questions about the impact on your beneficiaries or finances? Let’s walk through the pros and cons.
