Traditional life insurance only pays out when you die. But what if you face a critical illness, chronic condition, or terminal diagnosis while you're still alive? That's where living benefits come in.
What Are Living Benefits?
Living benefits (also called accelerated death benefits) allow you to access a portion of your life insurance death benefit while you're still alive if you meet certain qualifying conditions.
Three Main Types of Living Benefits:
1. Critical Illness Benefit
Pays out if you're diagnosed with a major illness like heart attack, stroke, cancer, or organ failure.
2. Chronic Illness Benefit
Provides funds if you can't perform 2 or more activities of daily living (bathing, dressing, eating, etc.) for at least 90 days.
3. Terminal Illness Benefit
Accelerates the death benefit if you're diagnosed with a terminal condition and given 12-24 months to live.
Real-World Example
John, age 52, has a $500,000 IUL policy with living benefits. He's diagnosed with stage 3 cancer and needs to stop working for treatment. His policy allows him to access $250,000 (50% of the death benefit) tax-free to cover medical bills, replace lost income, and maintain his family's lifestyle during treatment.
Why This Matters
Most people will face a health crisis before they die. Living benefits ensure your life insurance actually protects you and your family when you need it most—not just after you're gone.
BlueTide's Approach
All of our recommended IUL policies include living benefits at no additional cost. We believe life insurance should protect your life, not just your death.