What does a living needs rider allow a policyholder to do?

A living needs rider provides the policyholder with the option to access a portion of the death benefit while they are still alive, typically in cases of severe health conditions, such as terminal illnesses. This rider is particularly valuable as it allows individuals facing significant medical challenges to utilize funds that would otherwise be paid out to beneficiaries upon their death. This can help cover medical expenses, living costs, or other financial burdens during a time of crisis.

The option to access the death benefit can be crucial for many policyholders, as it provides not only financial relief but also peace of mind, knowing that they can use the life insurance benefit when it is most needed. This is a distinct feature of the living needs rider compared to other choices, which address different aspects of life insurance policies and their provisions.