Living Benefits
Living benefits refer to life insurance features or optional riders that allow access to the benefits of your coverage while you are still living. Qualifying events may include chronic, critical or terminal illness or disability.

The most common type of living benefits rider, or addition to a policy, is called an accelerated benefits rider (ABR). The ABR allows access to your death benefit if you become terminally or chronically ill and meet the required conditions. The rider is often available at no additional charge, and the coverage may even be available to add to an existing, older insurance policy. There is generally no restriction placed on the use of the benefit received.

Another form of living benefits is called a long-term care (LTC) rider. Unlike the ABR, the benefits of an LTC rider are calculated based upon your costs for qualified services up to the limits specified. Qualified services may include nursing home care, in-home care or adult day care. However, the coverage and features will vary by product and by company. There is generally an additional cost for this type of coverage.

The use of living benefits features or rider generally reduce other policy values, including the cash value and death benefit of the policy. In addition, there may be exclusions, limitations and terms under which the features or riders may be continued in force or discontinued.

Speak with your financial representative about living benefit options and how they can help you be prepared for medical issues that may affect your retirement savings.