Living Benefits

Living benefits, also known as accelerated death benefits, are features included in some life insurance policies that allow policyholders to access a portion of their death benefit while they are still alive. These benefits can be utilized in the event of a serious illness, such as a critical, chronic, or terminal illness. Living benefits provide financial support to cover medical expenses, long-term care, or other costs that arise due to the illness, helping to ease the financial burden during challenging times.

A critical illness is a severe health condition that significantly impacts a person's life and often requires extensive medical treatment. Common examples include cancer, heart attack, stroke, and major organ transplants. These illnesses can lead to substantial medical expenses and loss of income, making financial protection through insurance crucial.

A chronic illness is a long-term health condition that significantly impacts a person's ability to perform at least two out of six activities of daily living (ADLs). These activities include eating, bathing, dressing, toileting, transferring (walking), and continence. Chronic illnesses often require ongoing medical care and can affect a person's quality of life and independence.

A terminal illness is a condition that is expected to lead to death within a relatively short period, typically 12 to 24 months, despite medical treatment. This type of illness significantly impacts a person's ability to perform daily activities. It often requires comprehensive palliative care to manage symptoms and improve quality of life in the remaining time.