Whole Life Insurance – Lifetime Protection with Guaranteed Cash Value

 Definition

Life insurance with living benefits (also called accelerated benefits or living benefit riders) allows the policyholder to receive a portion of their death benefit while alive if they experience a qualifying life event — like a serious illness, chronic condition, or critical injury.

 How It Works

Let’s say you have a $250,000 life insurance policy.
If you’re diagnosed with a qualifying illness, you may be able to access up to 80% of that benefit — for example, $200,000 — to help with:

• Medical bills

• Home care or long-term care

• Replacing lost income

• Paying off debt or mortgage

• Supporting your family during recovery

Whatever funds you use are deducted from the total death benefit your beneficiaries receive later.

 Common Living Benefit Triggers

1. Critical Illness: Cancer, heart attack, stroke, kidney failure, etc.

2. Chronic Illness: When you can’t perform 2 of 6 daily living activities (like bathing, dressing, or eating).

3. Terminal Illness: When a doctor diagnoses less than 12–24 months to live.

 Types of Policies That Offer It

• Indexed Universal Life (IUL)

• Whole Life Insurance

• Term Life (with rider add-ons)

Some policies automatically include living benefits, while others offer them as optional riders for a small fee.

 Key Advantages

 Access to your benefits while alive
 Financial support during health crises
 Protects both income and legacy
 Keeps your family secure even if you never use it

 Example

A 45-year-old policyholder with a $300,000 IUL suffers a heart attack. His policy includes critical illness living benefits, allowing him to access $150,000 to cover treatment and missed work. The remaining $150,000 stays as the death benefit for his family.