Best Living Benefits Life Insurance Companies

Pacific Life is the best overall life insurance company for living benefits. Other providers excel in affordability or customer service. The table below shows a quick comparison to help you find the best life insurance plans with living benefits for your health and financial protection needs.

The rates above are based on average quotes for a 20-year-term policy for 40-year-old nonsmokers with average health and wealth. Actual premiums will vary depending on your profile and coverage needs.

Choosing the best life insurance with living benefits doesn't have to be complicated. The sections below break it down, from comparing rider options to evaluating costs and eligibility. This guide will help you find a policy that protects your loved ones and supports you financially if you face a serious illness.

Insurance providers calculate life insurance with living benefits costs differently. To get an accurate estimate, compare personalized quotes from multiple providers. Use our online quote tool below to get started.

Living benefits in life insurance policies, sometimes called accelerated death benefits, are provisions that allow you to receive a portion of your death benefit while alive under certain conditions. 

A medical diagnosis that shortens life expectancy or requires ongoing medical care triggers these benefits. You can use these funds to cover medical expenses, pay for in-home care or settle everyday bills.

Life insurance with living benefits offers four main types of coverage, each designed to help you access your death benefit under different circumstances. Understanding these options helps you choose the right protection for your specific health and financial needs.

Terminal Illness Benefits

Terminal illness benefits allow you to access a portion of your death benefit when diagnosed with a condition that gives you 24 months or less to live. Most insurers require physician certification of your terminal diagnosis and may request a second medical opinion. Once approved, you receive a lump sum payment that you can use for any purpose (medical bills, living expenses or final wishes). The remaining death benefit goes to your beneficiaries after you pass away.

Chronic Illness Riders

Chronic illness riders provide monthly payments when you can no longer perform at least two activities of daily living (bathing, dressing, eating, toileting, transferring or continence) for 90 consecutive days. These riders pay a monthly benefit based on your death benefit amount, helping cover caregiving assistance, home modifications or facility costs. The total benefits you can receive are typically capped at a percentage of your policy value over your lifetime.

Critical Illness Coverage

Critical illness coverage provides a one-time lump sum payment when you're diagnosed with specific major conditions like heart attack, stroke, cancer, kidney failure or organ transplant. The payout amount varies depending on the condition's severity and your policy terms. Each insurer maintains its own list of covered conditions. This immediate financial support helps during recovery when you might face reduced income and increased medical expenses. Critical illness coverage is available as an optional rider or a standalone policy.

Long-Term Care Riders

Long-term care riders help cover expenses when you need extended care due to cognitive impairment or inability to perform daily activities. These riders provide monthly benefits for care received in nursing homes, assisted living facilities or your own home. Benefits begin after a waiting period and continue as long as you need qualifying care, up to your policy's benefit limits. Funds used through the long-term care rider reduce your policy’s death benefit on a dollar-for-dollar basis.

Consider your financial strategy, health status and coverage needs when deciding whether to include living benefits.

Life insurance policies with living benefits provide financial flexibility by allowing access to a portion of the death benefit during serious illness. Pacific Life is the best provider, offering comprehensive rider options and competitive premiums. Protective Insurance, Lincoln Financial, Ethos and Prudential also offer strong options that serve different needs and budgets.

Compare policy features, coverage amounts and costs to choose the right life insurance with living benefits.

Here are frequently asked questions about life insurance with living benefits.

Life insurance with living benefits covers two scenarios: it pays your beneficiaries if you die, and provides cash while you're alive if you're diagnosed with a qualifying serious illness. We researched companies that excel at both to help you find coverage that fits your needs and budget.

Our Research Approach

We built a scoring system that weighs what matters most when you're buying life insurance with living benefits. Companies earn up to five points in each category.

• Affordability (50%)
• Customer Experience (30%)
• Coverage Options (20%)

We gathered this data through direct quote requests, AM Best financial ratings, J.D. Power customer satisfaction ratings, NAIC complaint indices, online customer reviews and comprehensive product research across companies with broad national coverage and online quote capabilities.

Standard Quote Profile

Our rate comparisons use this baseline customer:

• 40-year-old male
• Nonsmoker
• 5'9" and 160 pounds
• Average health rating

We modified this profile by age, gender, location, health status, and tobacco use to capture rate variations across different customer types. All premium data reflects this standardized approach unless we specify otherwise for demographic-specific analysis.

We tested multiple term lengths and coverage amounts to identify pricing patterns, then used these trends to determine which companies offer the most competitive rates for living benefits riders across different customer profiles.