What are living benefits in relation to life insurance?

Living benefits in the context of life insurance refer to provisions that enable policyholders to access a portion of their death benefit while they are still alive. This feature is particularly valuable for individuals facing serious health conditions, such as terminal illnesses, chronic illnesses, or critical illnesses that may require significant medical expenses or lifestyle adjustments. The purpose of these benefits is to provide financial support during a challenging time, allowing policyholders to utilize their life insurance policy in a way that can alleviate financial stress before their death.

This option emphasizes the versatility of life insurance as not just a tool for beneficiaries after the policyholder's passing, but also as a valuable resource for the policyholder when they may need it most. This aspect of life insurance reflects a growing recognition of the need for policies that offer more dynamic support throughout the policyholder's lifetime. Other options do not accurately define living benefits, as they either refer to benefits available after death, claim limitations, or misconceptions related to policy types.