Living Benefits – Life Insurance You Can Use While You’re Still Living
More Than Just a Death Benefit
Life insurance living benefits let you access part of your policy’s value before death if illness or injury affects your finances.
At StAK Insurance Solutions, we explain how these riders work, what’s covered, and how they can protect your family during critical or chronic illness, not just after.
That’s the power of living benefits, riders that allow you to access a portion of your death benefit early if you experience a qualifying event such as a critical illness, chronic illness, or terminal diagnosis.
At StAK Insurance Solutions, we make sure you understand how living benefits work, what they cover, and why they could be one of the most valuable features of your policy.
Why Life Insurance Living Benefits Matter
A serious illness can create two crises: one medical and one financial. Medical bills, reduced income, and the cost of in-home care can add up fast. Living benefits give you a way to:
Cover out-of-pocket medical costs or experimental treatments not covered by health insurance.
Keep the mortgage paid and food on the table while you focus on recovery.
Pay for home modifications, transportation, or other comfort needs.
Use policy benefits instead of cashing out retirement accounts.
In other words, living benefits turn life insurance into a more versatile financial tool — not just a payout for “someday,” but a lifeline you can rely on today.
How Life Insurance Living Benefits Work
Accelerated Death Benefit Riders
Most modern life insurance policies include an accelerated death benefit rider at no extra cost. This allows you to receive a percentage (often up to 80%) of your death benefit early if:
- You are diagnosed with a terminal illness (typically life expectancy < 12–24 months)
- You are unable to perform 2 of 6 activities of daily living (chronic illness trigger)
- You are diagnosed with a covered critical illness (heart attack, stroke, cancer, etc.)
The money is yours to spend however you choose — there are no restrictions.
Example Scenario
Imagine a policyholder with a $250,000 life insurance policy who is diagnosed with an aggressive form of cancer. Instead of leaving the entire benefit until death, they access $100,000 immediately.
This money covers:
- Lost income during treatment
- Travel to a specialty treatment center
- Childcare and household help
- Out-of-network medical expenses
The remaining $150,000 is paid to beneficiaries upon death.
For official information on accelerated death benefit riders and consumer protections, visit the Illinois Department of Insurance.
Types of Living Benefits
Chronic Illness Benefits
Trigger when you are unable to perform activities of daily living like bathing, dressing, or eating. We can also show how these riders fit with your Financial Education in Peoria IL goals.
Critical Illness Benefits
Pay out upon diagnosis of specific conditions such as:
- Heart attack
- Stroke
- Cancer
- Kidney failure
- Major organ transplant
Terminal Illness Benefits
Provide early payout if you have a life expectancy of 12–24 months, giving you freedom to use the funds as you wish.
Costs & Considerations
Many policies include basic living benefits at no additional cost. Some enhanced riders may have a small fee. When we compare policies, we:
- Show you which carriers include living benefits automatically.
- Explain any costs associated with optional riders.
- Help you understand how much of your death benefit can be accessed early.
Combining Living Benefits with Other Coverage
Living benefits work best as part of a complete protection plan:
- Pair with term life for affordable income protection.
- Add to permanent policies to create a flexible long-term asset.
- Combine with final expense insurance to ensure funeral costs are still covered even if part of the benefit is used early.
Learn how Life Insurance in Peoria IL and living benefits can work together to create a flexible protection plan.
Our Process
We make sure you understand how living benefits fit into your plan:
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1
Policy Review: We check if your current coverage includes living benefits.
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2
Carrier Comparison: If not, we find policies that offer them — at no or low extra cost.
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3
Needs Analysis: We estimate how much you might need in a critical illness scenario.
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4
Ongoing Support: We help you or your family file a claim if you ever need to use the benefit.
Why Work With StAK Insurance Solutions
- Education First: We explain complex riders in simple, actionable terms.
- Independent & Local: We compare policies from multiple carriers to get the best features for your budget.
- Compassionate Service: These conversations can be tough — we walk through them with care and respect.
- Year-Round Help: We’re here long after your policy is issued.
Put living benefits to work for you.
Life insurance should do more than just pay a death benefit — it should give you options when you need them most. Let us help you choose a policy that provides true protection.
Call Now: (309) 453-6546
See Your Living Benefit Options
Common Questions About Living Benefits
Yes. Any amount you use is deducted from the final payout, but this allows you to access money when you truly need it.
No. Funds can be used for anything — travel, bills, caregiving, or simply making life more comfortable.
Generally no, if structured as an accelerated death benefit. We can confirm based on your policy and state laws.
Not all. We compare multiple carriers to find policies that include strong living benefit riders.