What are living benefits in life insurance?

Living benefits in life insurance refer to benefits that the insured can access while still alive, typically through additional riders attached to the life insurance policy. These riders allow policyholders to receive a portion of their death benefit under specific circumstances, such as a terminal illness diagnosis or a critical illness. This feature provides financial support during serious health issues, helping cover medical expenses or other financial needs when they are most critical.

Other choices do not accurately define living benefits. For example, benefits that can only be accessed after death directly contradict the concept of living benefits, which emphasizes access while alive. Options referring to age restrictions or annual dividends do not pertain to the nature of living benefits either, as they relate more to specific policyholder eligibility or profit-sharing features rather than the immediacy of access to benefits based on current health conditions.