To access living benefits, a policy owner must meet certain qualifying criteria, which are outlined in the policy. Typically, this includes being diagnosed with a serious illness or condition, such as cancer, heart attack, stroke or terminal illness. An insurance agent working with your provider can guide you in the next steps to navigate the claims process.
You must already have a life insurance plan in place with your living benefits rider when you’re injured or get sick to qualify for a payout. Most life insurance living benefits include a waiting period from the time you sign onto coverage until the date when your insurance goes into effect, which prevents you from buying the add-on after you qualify for the benefit.
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How to Get a Life Insurance Policy with Living Benefits
- Research insurance companies that offer it.
- Look for policies that specifically mention living benefits or accelerated death benefits. Both term and permanent life insurance policies may offer these riders, and coverage is available from most major insurance providers like New York Life and Nationwide. You can also work with a licensed insurance agent or financial professional, either of whom can help you find policies that fit your needs and budget.
- Once you find a policy you’re interested in, you’ll need to apply for coverage. That usually involves filling out an application and undergoing a medical exam, which helps the insurance company determine your risk profile and your cost of coverage. If you have a pre-existing medical condition, you may need to provide additional information or documentation to the insurer. The best no-exam life insurance options could be appealing for those already showing symptoms of a disqualifying disease.
Riders
If you’re approved for coverage, you can add a living benefits rider to your policy if it’s not already included. This typically increases the cost of the policy, but it provides valuable coverage in case of a serious illness or condition. The added tax-deferred growth of a cash value life insurance with this extra benefit can provide more complete peace-of-mind for your loved ones if you’re growth- and investment-oriented.
If your policy includes some form of living benefits as standard coverage, you may be able to use the rider to add extensions listed above. For example, your policy might include critical illness benefits as a part of its standard life insurance coverage but include nursing home care as a rider. Specific insurance products offered will vary depending on the company you’re working with.
