Living Benefits Life Insurance: A Complete Guide (2024)

Welcome to our comprehensive guide on the 10 best life insurance policies with living benefits for 2023. In this article, we will delve into the top life insurance options that provide added financial security by offering living benefits such as critical illness, disability, and long-term care coverage.

• Life insurance policies with living benefits offer the use of policy benefits while you are alive
• Several life insurance companies offer living benefits in their life insurance policies which are either already a part of the policy or can be selected as add-ons
• Many of these insurance companies offer online quotes making it easy for customers to compare their options and choose the one that suits them the best

We will discuss the importance of these benefits and how they can protect you and your loved ones during life’s uncertainties. Additionally, we will explore the criteria used to select the best policies and provide insights on why they stand out. If you’re ready to secure your financial future, enter your zip code below to compare rates from the top insurance providers and find the perfect life insurance policy tailored to your needs.

A Brief Introduction to Life Insurance With Living Benefits

Unlike standard life insurance policies that offer benefits to your family after you are gone, life insurance with living benefits offers these benefits to you and your family while you are still alive. You can make use of these benefits if you are undergoing extensive treatment or care, have a chronic or terminal illness, or have a permanent disability.

When can you claim living benefits?

You can claim your living benefits in the case of a qualifying event that is mentioned in your policy contract. For example, a long-term care rider, chronic illness rider, critical illness rider, and terminal illness rider.

The qualifying events may include health conditions that limit your life span to 24 or fewer months, require severe medical intervention for survival, dramatically reduce the lifespan without any medical intervention, or require lifelong confinement in a facility.

Do all life insurance policies have living benefits?

Not all life insurance policies include living benefits. Certain life insurance policies automatically have living benefits as a part of their policy. For the rest of the policies, living benefits can be added on by paying an extra fee.

How much does life insurance with living benefits cost?

The cost of the life insurance policy and the premiums vary based on the company and the policy you choose. Many factors affect the cost of the policy premium. Factors like age, health, smoking status, and add-on riders affect the cost of the premium. The younger and the healthier you are, the lower the policy premiums.

Now that you have a fair idea about life insurance living benefits, let us take a look at some of the best life insurance companies with living benefits.

10 Best Life Insurance Policies With Living Benefits for 2022

There are several insurance companies in the U.S. that offer health insurance with living benefits. Here, we have shortlisted the top 10 companies with the best coverage options to make your choice easier.

1. New York Life Insurance Company

New York Life was founded in 1845 and is known as one of the most reputable insurance companies in the United States. It offers two whole life insurance policies that include living benefits and add-on rider options.

Pros

• The policy offers accelerated death benefits that cover chronic illness.
• The convertible term policies are available for those aged up to 75 years.
• The company has a long history of cash dividends.

Cons

• It does not offer online quotes.
• The living benefits might not be available in every state.
• It requires a medical exam.

Additional Policy Features

New York Life offers several term policies, whole life policies, and universal life policies. Whole life policies offer add-on living benefits options that offer access to your death benefits if diagnosed with a terminal illness. You can also add riders for a disability waiver. The chronic illness rider also offers up to 50% access to a part of the policy’s death benefit.

2. Haven Life

Founded in 2015, Haven Life is backed by the industry giant MassMutual and offers term policies nationwide. The company offers two life insurance policies with living benefits: Haven Term and Haven Simple. Haven Term is available nationwide, while Haven Simple isn’t available in the states of California, Delaware, South Dakota, North Dakota, and New York.

Pros

• The company offers online quotes.
• The Haven Simple policy does not require any medical exam.
• It offers an accelerated death benefit and disability waiver of premium rider.
• The coverage can be purchased online as well.

Cons

• It does not offer an option to meet the agent in person.
• It does not offer a whole or universal life insurance policy.
• Haven Simple is not available in all states.
• It’s not ideal for senior citizens and people with health issues.

Additional Policy Features

Haven Term offers an additional living benefits package known as Haven Life Plus. If you are terminally ill with 12 to 24 months to live, you can collect a significant portion of your death benefit through the accelerated death benefit rider. You can stop paying the premiums if you become completely disabled through treatment if you purchase the waiver of the premium. With Haven Life Plus, you get a suite of tools, such as a free online will, subscription to a fitness app, and discounts at MinuteClinics.

3. State Farm Insurance

State Farm, founded in 1922, offers a variety of insurance coverage plans and also allows you to bundle up life insurance with home or renters, health, auto, and many other options. It also offers a variety of discounts on bundled coverage plans.

Pros

• It allows you to meet agents in person or by phone.
• It offers discounts on bundled policies.
• It offers online quotes for some life insurance policies.

Cons

• For some policies, it is mandatory to speak to an agent.
• Some living benefits policies have restrictions depending on the state.
• It has less competitive premiums.

Additional Policy Features

State Farm life insurance policies with living benefits include term, permanent, and universal coverage. It offers a flexible care benefit rider which offers accelerated death benefits and a waiver of premium for disability. If you become chronically ill or undergo long-term treatment or care, you can access up to 2% of your death benefit every month. You may also be eligible to stop paying premiums depending on the duration of the disability through the waiver of premium for disability.

4. Mutual of Omaha

Mutual of Omaha, founded in 1909, claims that it pays out 85% of whole life insurance claims within 24 hours. The policies are available in 50 states, but the offerings can vary by state. It offers life insurance policies for those up to age 85 with accelerated death benefits.

Pros

• It offers a range of policy options for seniors.
• Online quotes are available for whole and term life insurance policies.
• Some policies do not require a medical examination.
• Affordable policies are available with multiple riders and living benefits.

Cons

• Online purchasing offers fewer options.
• The application and claims process can be slow and lengthy for some policies.
• Certain policies are confusing.
• It is mandatory to speak to an agent for certain policies.

Additional Policy Features

The policy for riders is customizable and requires no extra fee. Both universal and whole life insurance policies include living benefits. The universal insurance policy allows you to access accelerated death benefits for chronic or terminal illnesses. By adding a long-term care rider, you can receive monthly payments of 1%, 2%, or 4% of your death benefit.

5. John Hancock Financial

John Hancock, founded in 1862, has a long history in the life insurance business. It offers living benefits with every life insurance policy. It also offers a range of terms and universal life insurance policies.

Pros

• Online quotes are available for term life insurance policies.
• A variety of living benefit rider options are available.
• The Vitality Program can help save up to 25%.
• It offers affordable policies.

Cons

• Certain policies have a lengthy coverage process.
• Fewer policy options are available online.
• There are fewer options for customizing policies.

Additional Policy Features

The term and permanent policies include accelerated death benefit riders. They also offer riders a waiver of premium for disability and unemployment, critical illness, and long-term care for an extra fee. You can access 10% to 25% of the policy’s face value for critical illness. You can use the disability waiver of premium if you are completely disabled for at least six months and access long-term care benefits of 2% or 4% in monthly installments.

6. American International Group (AIG)

Founded in 1919, AIG operates in over 80 countries. It offers living benefits through term, universal, and whole life insurance policies. The company offers living benefits through term, universal, and whole life insurance policies.

Pros

• The Term life insurance policies are customizable.
• It gives you the ability to convert a term policy into a permanent life insurance policy.
• The term policy includes a Quality of Life plan with living benefits.

Cons

• The competitive pricing is below average.

Read more: Best Permanent Life Insurance: A Complete Guide

Additional Policy Features

The customizable term policy options include 18 terms to choose from and several add-on riders. You can apply online for term coverage but are required to talk to an agent for universal and whole life insurance. The Select-a-Term and the Quality of Life Flex Term policies guarantee a minimum benefit based on your policy agreement. You can also add a disability waiver for a premium rider for an additional fee.

7. MassMutual Life Insurance Company

Founded in 1851, MassMutual offers policies nationwide. It offers whole life insurance and long-term care insurance packages that provide flexibility regarding how you use the benefits. You can use these benefits to receive payouts to cover long-term care, cancel the policy and receive the surrender value while you are living, and receive a tax-free death benefit for dependents.

Pros

• Flexible living benefits are provided for long-term care riders on whole – life policies.
• The policies are eligible for dividend payments.
• The company offers online account management and has a mobile app.

Cons

• It requires medical underwriting.
• It does not offer online quotes for whole – life policies.
• There are limited details about the terms online.

Additional Policy Features

If you want funds in case of a terminal illness without much flexibility, you can add an accelerated death benefit rider to a regular whole life insurance policy. This will provide you with an advance if you are diagnosed with a terminal illness and are expected to die within 12 months. You will get a policy that accumulates cash value and will be eligible for dividends. Even though MassMutual writes policies nationwide, the policy offerings might differ from state to state.

8. Nationwide Mutual Insurance Company

Founded in 1925, Nationwide offers affordable term policies with an accelerated death benefit rider. The long-term care rider is available on the universal and variable life insurance policies. Nationwide offers a variety of options of living benefits and has one of the most affordable policies on the market.

Pros

• Online quotes and applications are available for term policies.
• It offers the most affordable term policy options in the industry.

Cons

• It does not offer online quotes for permanent life insurance policies.
• It does not offer long-term care riders on term policies.

Additional Policy Features

Nationwide offers a universal or variable term policy with the long-term care rider which provides a monthly benefit in case of long-term care. You can also get an accelerated death benefit on the term, whole, universal, and variable life insurance policies. This provides you with the lump sum from the death benefit in case of a terminal illness.

9. Fidelity Investments

Providing insurance products since 1896, Fidelity offers term and permanent policies without medical underwriting. You can get the policies approved and purchase coverage online. They offer easy qualifying policies.

Pros

• The policies do not require a medical exam.
• The policies offer same-day approvals.
• Selected policies offer a terminal illness rider at no additional cost.

Cons

• There is a lower maximum death benefit on permanent policies.
• The premiums are comparatively higher than other providers.

Additional Policy Features

The Final Expense and Guaranteed Issue policies all include a terminal illness rider at no additional expense. Even though the terms of the riders vary, you can access the portion of the death benefit if you are diagnosed with any terminal illness and are expected to pass away within 12 to 24 months. Fidelity is licensed in all states except Wyoming and New York. Some policies can be bought online while some need to be bought on the phone.

10. Northwestern Mutual

Founded in 1859, Northwestern Mutual is an ideal provider for senior citizens. It offers a whole Life Insurance policy with accessible cash value and accelerated care benefits. They also offer convertible term policies.

Pros

• The company offers all types of life insurance.
• Accelerated care benefits are available on permanent policies.

Cons

• It does not offer online quotes.
• It does not offer guaranteed issue or final expense policies.

Additional Policy Features

Permanent policyholders have all-time access to their cash value. The accelerated care benefit is designed to help with potential long-term care costs. A large portion of the face value can be accessed in advance if you qualify. You can add an early pay benefit which will allow you to access 50% of your death benefits if you are diagnosed with a terminal illness.

Case Studies: Reducing Home Insurance Premiums

Case Study 1: The Power of an Umbrella Policy

In this case study, we examine how Mr. and Mrs. Johnson were able to significantly reduce their home insurance premiums by leveraging an umbrella policy. The couple had both home and automobile coverage from the same insurance provider. However, they often worried about the potential financial consequences of a major accident or lawsuit exceeding their coverage limits.

By adding an umbrella policy, they extended their liability protection and increased their coverage limits. This additional layer of coverage not only provided them with peace of mind but also allowed them to lower their overall premium costs.

Case Study 2: Maximizing Insurance Discounts through Home Upgrades

In this case study, we explore how Mr. Rodriguez, a homeowner, successfully reduced his insurance premiums by making strategic home upgrades. Recognizing the importance of home security, Mr. Rodriguez installed a state-of-the-art security system that included surveillance cameras, motion sensors, and smart locks.

He also added fire-resistant materials to his roof, enhancing the home’s safety measures. These improvements made his property less susceptible to theft and damage, leading to a substantial reduction in his homeowners insurance premiums.

Case Study 3: Bundling Insurance Policies for Cost Savings

In this case study, we analyze how the Thompson family saved on their home insurance by bundling multiple policies. They had previously obtained their home insurance from one company and their auto insurance from another.

Upon learning about the potential savings of consolidating their policies, they decided to switch their auto insurance to the same provider as their home insurance. This decision qualified them for a significant multi-policy discount, resulting in notable reductions in both their home and auto insurance premiums.

Case Study 4: Retiring Empty Nesters Optimize Coverage

In this case study, we delve into how the Andersons, a retired couple whose children had moved out, effectively reduced their home insurance premiums. With their children living independently, the Andersons realized that their coverage needs had changed. They downsized their home and no longer required the same level of property and liability coverage.

By adjusting their coverage amounts and removing unnecessary riders, such as coverage for student belongings, they were able to tailor their policy to their new lifestyle, resulting in substantial premium savings.

The Final Verdict

Although there are several companies that offer life insurance with living benefits, you must carefully choose a policy and a company according to the level of coverage you are looking for based on your health and budget. Make sure to read all policy-related documents carefully before making the final decision. When in doubt, always consult an insurance expert. To find the best policy that suits your needs, compare insurance quotes on our site.