Living Benefits
A feature or rider in some life insurance policies that allows the policyholder to access a portion of the death benefit while still living if they experience certain qualifying events, such as a terminal, chronic, or critical illness. Accelerated death benefits are a type of living benefit.
Detailed Explanation
These benefits can help cover medical expenses or lost income during a difficult time.
Practical Example
Sarah's life insurance policy includes a living benefits rider for critical illness. If she is diagnosed with a qualifying critical illness, she can access a portion of her death benefit to help with treatment costs and other financial needs.
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