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Life insurance you can use while you are aliveLife Insurance With Living Benefits: Coverage That Works While You Are Living
Traditional life insurance only pays out after you are gone. Team Thrive builds living benefits into our Indexed Universal Life policies, so a portion of your coverage can help you and your family while you are still here, if a serious illness happens first.
Reviewed by Team Thrive, Licensed Insurance Professionals, CA License #0L74432. Updated November 2026.
What are living benefits in life insurance?
Living benefits are a feature of some life insurance policies that let you access part of your death benefit while you are still alive, if you are diagnosed with a qualifying chronic, critical or terminal illness. Instead of your coverage sitting unused until you pass away, it can help cover medical bills, lost income or everyday expenses when you need it most. They are also called accelerated benefits.
Living benefits in one minute
The short version, before the details below.
- You can access part of your death benefit for a qualifying illness, not just after death.
- Team Thrive builds living benefits into the Indexed Universal Life policies we offer.
- Coverage has to be in place before a qualifying diagnosis. It cannot be added afterward.
- Using a living benefit reduces the death benefit your beneficiaries receive.
- The right mix depends on your health history, budget and family situation.
What types of living benefits can a life insurance policy include?
Living benefits usually come as three kinds of riders or built-in features. Exact definitions and limits depend on the policy.
Critical illness
Access to benefits after a qualifying diagnosis, such as a heart attack, stroke or invasive cancer, to help cover treatment and living expenses, as the policy defines it.
Critical illness guide →Chronic illness
Access to benefits if you cannot perform basic daily activities, such as bathing or dressing, for an extended period because of a qualifying condition, as the policy defines it.
Chronic illness guide →Terminal illness
Access to benefits when a physician certifies a terminal condition with a limited life expectancy, as the policy defines it.
Terminal illness guide →
Living benefits and cash value
Indexed Universal Life policies can also build cash value linked to a market index, with a floor and a cap, subject to policy charges and terms.
IUL cash value guide →What are the pros and cons of living benefits?
A balanced look, so you know what living benefits can and cannot do before you decide.
What living benefits can do
- Make part of your death benefit available while you are alive for a qualifying illness.
- Help cover medical bills, lost income or everyday expenses.
- Come built into the Indexed Universal Life policies we offer.
- Carry no additional premium for the riders on the policies we offer.
What to keep in mind
- Coverage has to be in place before a qualifying diagnosis.
- Using a living benefit reduces the death benefit your beneficiaries receive.
- Qualifying conditions, definitions and limits vary by policy.
- Living benefits do not replace health insurance or long-term care insurance.
Who may benefit from life insurance with living benefits?
Not everyone needs every type of living benefit. Your agent will help you work out which coverage actually fits your situation, rather than selling you everything at once.
Parents and growing families
Who want their coverage to do more than sit unused.
Business owners
Whose income the business depends on directly.
Pre-retirees
Thinking about both protection and tax-advantaged growth.
Self-employed individuals
Without employer-sponsored disability coverage.
A family history of illness
Anyone with a family health history of heart disease, stroke or cancer.
How do you get life insurance with living benefits?
Consultation
Talk with a Team Thrive advisor about your health, family, goals and coverage priorities.
Needs analysis
We identify which living benefits best match your health, family, goals and financial needs.
Policy design
We show how living benefits fit into an Indexed Universal Life policy built around you.
Application
Complete a clear application with health questions and, when required, a brief medical exam.
Approval
Once approved, your policy becomes active with the selected living benefits and coverage terms.
How much does life insurance with living benefits cost?
We do not post a single price, because it would mislead you. On the policies we offer, the living benefits riders carry no additional premium. Terms and availability depend on the policy, and a free quote shows exactly what drives your number.
- AgePremiums generally increase the older you are when you apply.
- HealthYour current health and medical history affect eligibility and price.
- Coverage amountA larger death benefit means larger available living benefits and higher premiums.
- Policy designThe type of policy and how it is built also shape the cost.
How do living benefits compare with other life insurance?
See how living benefits stack up against traditional coverage, and how they combine with tax-deferred cash value growth in an Indexed Universal Life policy.
Living benefits vs. traditional life insurance
See the direct cost and feature comparison.
Read the comparison →IUL with living benefits
How living benefits combine with tax-deferred cash value growth.
See how they combine →Why choose Team Thrive for living benefits?
Built in from the start
Living benefits are not an add-on we mention in passing. They are built into how we structure Indexed Universal Life policies from the start, for every client, not just the ones who ask.
No-pressure conversations
Your advisor walks through real numbers for your specific situation before you decide anything, and there is no cost or obligation just to talk.
One policy, two jobs
One policy that protects your family after you are gone, and helps protect your finances if a serious diagnosis happens first, instead of managing separate products for each.
Straight answers about living benefits
The questions families ask us most about using life insurance while they are alive.
What are living benefits of life insurance?
Living benefits let you access part of your life insurance death benefit while you are still alive, if you are diagnosed with a qualifying chronic, critical or terminal illness. It is a feature of the policy, not a separate policy.
Do all life insurance policies have living benefits?
No. Living benefits are riders or built-in features that vary by insurer and policy. Team Thrive builds them into the Indexed Universal Life policies we offer, but not every life insurance policy includes them automatically.
Does Team Thrive offer living benefits?
Yes. Living benefits are built into the way Team Thrive structures Indexed Universal Life policies, rather than sold as separate add-ons after the fact.
Do living benefits cost extra?
On the policies we offer, the living benefits riders carry no additional premium. Terms, definitions and limits depend on the policy, so we go through the exact wording with you before you apply.
How much does life insurance with living benefits cost?
There is no single price. Your cost depends on your age, health, the coverage amount and how the policy is designed. On the policies we offer, the living benefits riders carry no additional premium. A free quote shows the exact number for your situation.
Can I add living benefits after I am diagnosed?
No. Living benefit coverage has to be in place before a qualifying diagnosis and cannot be added afterward. That is why it is easier to plan for it sooner.
Does using a living benefit affect my beneficiaries?
Yes. Any amount you access while you are living is generally deducted from your death benefit, so your beneficiaries receive less than the original coverage amount.
What is an accelerated death benefit?
An accelerated death benefit lets you receive part of your death benefit early, while you are alive, usually after a qualifying terminal, critical or chronic illness. Anything you take early reduces the amount paid to your beneficiaries later. Qualifying conditions and limits vary by policy.
Do term life insurance policies have living benefits?
Some do, but not all. Living benefits are riders or built-in features that vary by insurer and policy, so it is worth asking before you buy. We can show you which of the policies we offer include them.
Do living benefits replace health insurance or long-term care insurance?
No. Living benefits are not intended to replace health insurance or long-term care insurance. They are an early payout of part of your life insurance death benefit, so they reduce what your beneficiaries receive later.
Is life insurance with living benefits worth it?
It depends on your family health history, your existing coverage and whether you would rather have this flexibility built in than pay less for coverage that only pays out after death. A free consultation can help you compare.
Want to learn more about living benefits?
Schedule a free consultation and we will help you find the coverage that fits your needs and budget.
Source: What You Need to Know About Accelerated Benefits, Alabama Department of Insurance.
Team Thrive, led by Fion Banh, California insurance license #0L74432. Insurance products are subject to carrier underwriting and approval. Guarantees depend on the claims-paying ability of the issuing carrier. Living benefit riders may not be available in all states and reduce the death benefit when used. Indexed universal life is not a stock market investment. This website does not provide tax or legal advice. Not all products are available in all states.
Providing peace of mind to families nationwide through life insurance with living benefits, tax-free retirement strategies, and financial security for your loved ones.
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