Education First
What Are Living Benefits?
Life insurance that pays out while you're still alive — for qualifying medical events. No extra cost. No GoFundMe. Just protection when your family needs it most.
The Simple Version
Traditional life insurance pays your beneficiaries when you die. Living Benefits life insurance does the same thing — but it also lets you access a portion of your death benefit while you're still alive if you experience a qualifying medical event.
Think of it as insurance for your insurance. You hope you never need it. But if cancer, a heart attack, a stroke, or a chronic illness hits — you have access to real money, fast, with no restrictions on how you use it.
“I accessed $15,000 from my life insurance in 72 hours when cancer hit. No begging, no shame, just protection when I needed it most.”
What Qualifies?
Living benefits typically cover four categories of qualifying events.
Terminal Illness
Life expectancy of 24 months or less
Critical Illness
Heart attack, stroke, cancer, organ failure, and others
Chronic Illness
Inability to perform 2+ activities of daily living for 90+ days
Critical Injury
Traumatic brain injury, paralysis, severe burns
*Specific qualifying conditions vary by carrier and policy. Not all conditions qualify. Jeff will walk you through exactly what your policy covers.
How It Works
- 1
Qualifying Event Occurs
You're diagnosed with a qualifying condition — terminal illness, critical illness, chronic illness, or critical injury.
- 2
File an Accelerated Benefit Claim
Your doctor submits documentation to the carrier. Jeff handles this process with you — it's not complicated, but it helps to have someone who's done it before.
- 3
Receive Your Funds
The carrier approves the claim and sends you a lump sum or structured payment. Typically 72 hours to 2 weeks. No restrictions on how you spend it.
Frequently Asked Questions
Does using living benefits reduce my death benefit?
Yes — the amount you access is subtracted from your death benefit. If you have a $500,000 policy and access $75,000, your remaining death benefit is $425,000. The remaining benefit still pays to your beneficiaries when you pass.
How fast can I access the money?
Claims are typically processed in 72 hours to 2 weeks depending on the carrier and documentation. Jeff's clients have received funds in as little as 72 hours in urgent situations.
Is the money taxable?
In most cases, no. Accelerated death benefits paid due to terminal illness are generally excluded from gross income under IRS rules. Critical and chronic illness payments may have different tax treatment — Jeff will walk you through the specifics for your situation.
Do I need a separate rider for living benefits?
It depends on the carrier. Many modern policies include living benefits at no extra cost as a base feature. Others require an accelerated benefit rider, which typically adds $0–$30/month. Jeff only works with carriers that include living benefits.
What if I never get sick?
Your family receives the full death benefit when you pass, just like traditional life insurance. You pay the same premium either way — living benefits are essentially free insurance for your insurance.
Can I get living benefits if I already have a policy?
Possibly. Some existing policies can be converted or have riders added. In other cases, a new policy with living benefits built in may be more cost-effective. Jeff will review your current coverage and tell you exactly what makes sense.
Ready to See Your Options?
Jeff will build a custom plan based on your situation — real numbers, no guessing.