What are living benefits in life insurance?

Living benefits in life insurance refer to the funds that can be accessed by the policyholder while they are still alive, usually under specific circumstances such as a terminal illness, chronic illness, or critical illness. This feature allows policyholders to utilize a portion of their life insurance benefits to help cover medical expenses, ongoing care, or other financial needs that arise during their lifetime, rather than waiting for the policyholder to pass away before any benefits are realized.

This aspect of life insurance is particularly important because it provides financial support during challenging times, allowing policyholders to manage health-related costs or other expenses that may arise due to serious illnesses. By offering access to benefits while the policyholder is living, insurance companies help ensure that individuals can alleviate financial burdens associated with medical care, promoting overall well-being and peace of mind during difficult periods.