Living benefits are referred to as accelerated death benefits and many insurance carriers are offering them free with your life insurance policy. The purpose of the living benefits is to allow the policy owner the opportunity to use his or her life insurance benefits early in the case of serious injury, terminal illness, or other debilitating medical condition. Serious illnesses and injuries could affect your ability to earn an income.
The LBR allows a policyholder to offset this issue by accessing life insurance benefits prior to death. You could use these funds for things like adult daycare, home modifications (such as a wheelchair ramp or other equipment that your health insurance may not cover), nursing home care, or you can even use it for expenses that improve your quality of life. Such as taking that trip you and your spouse always dreamed of.