Protective 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 policy for your health and financial protection needs.
Best Living Benefits Life Insurance Companies
Updated: August 11, 2025
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Key Takeaways
Protective, Lincoln Financial and Nationwide are top-rated life insurance providers offering living benefits with flexible riders and competitive premiums.
Living benefits riders allow policyholders to access part of the death benefit early if diagnosed with a chronic, critical or terminal illness.
Premiums and availability of living benefits vary by insurer based on age, health and location. Compare coverage amounts, rider types and policy terms before you buy.
What Is the Best Life Insurance Company for Living Benefits?
Best Overall | Protective | $14 | $166 | 96 |
Best Cheap | Lincoln Financial | $14 | $165 | 90 |
Best Customer Service | Nationwide | $21 | $257 | 82 |
Best Life Insurance Company for Living Benefits: Protective
Protective is the best overall life insurance company for living benefits, delivering a strong mix of affordability, policy features and rider availability. It earned a MoneyGeek score of 96 out of 100 and offers a 10-year term policy with $250,000 in coverage for an average of $14 per month or $166 per year. While adding riders may increase premiums, Protective’s built-in benefits offer significant value at a competitive price point.
Best for Living BenefitsProtective
MoneyGeek Score:
96/ of 100
Average Monthly Rate$14
Average Annual Rate$166
Overview
Founded in 1907, Protective brings over a century of experience to its product lineup, which includes term, whole and universal life insurance. The company offers living benefits through a combination of built-in and optional riders, including:
- Accelerated Death Benefit Rider for terminal illness at no additional cost
- Chronic Illness Rider on select permanent life products
- Waiver of Premium, Accidental Death Benefit and Guaranteed Insurability options
- Child Term Rider, covering children until age 25 and convertible up to five times the original amount per child
- Flexible conversion options, allowing term policies to convert to permanent coverage before age 71 without a medical exam
Protective received a J.D. Power score of 653, ranking 9th overall and slightly above the industry average of 648. The company also holds an A+ rating from AM Best, signaling strong financial stability.
Best Cheap Life Insurance Company for Living Benefits: Lincoln Financial
Lincoln Financial is the best cheap life insurance company for living benefits, combining competitive pricing with strong product features. It also ranks second overall, earning a MoneyGeek score of 90 out of 100. A 10-year term policy with $250,000 in coverage from Lincoln costs an average of $14 per month or $165 per year.
Best CheapLincoln Financial
MoneyGeek Score:
90/ of 100
Average Monthly Rate$14
Average Annual Rate$165
Overview
Lincoln Financial has more than 120 years of experience in the life insurance industry, dating back to its founding in 1905. It offers term life insurance to individuals aged 18 to 80, with term lengths of 10, 15, 20 and 30 years. Applicants can qualify for up to $1 million in coverage without a medical exam, and up to $5 million with full underwriting.
Lincoln includes an accelerated death benefit rider for terminal illness at no additional cost on most term policies. Its universal life policies offer enhanced living benefits through riders that cover chronic, critical and terminal illnesses, as well as optional long-term care coverage through the Care Coverage rider. These riders give policyholders access to funds when they need care or face serious illness.
Lincoln earned a J.D. Power score of 652, slightly above the industry average of 648, and holds an A rating from AM Best, indicating strong financial stability.
Best Living Benefits Life Insurance Company for Customer Satisfaction: Nationwide
Nationwide shines in customer experience among insurers offering living benefits. It earned a MoneyGeek score of 82 out of 100, with a 10-year term policy of $250,000 costing $21 per month or $257 per year.
Best for Customer SatisfactionNationwide
MoneyGeek Score:
82/ of 100
Average Monthly Rate$21
Average Annual Rate$257
Overview
Nationwide has 99 years of experience in the life insurance sector, offering a broad array of products that cater to diverse coverage needs. The company's life insurance options include term, whole and universal policies, with a selection of riders for living benefits covering chronic, critical and terminal illness, plus long-term care.
These options allow policyholders to access funds from their policies if they face severe health issues. Nationwide boasts strong credentials with a J.D. Power score of 666, ranking 5th out of 21 life insurers in customer satisfaction. The company also holds an A+ AM Best rating and an A+ BBB rating, signaling superior financial stability. Nationwide's streamlined purchasing experience and excellent customer satisfaction make it a top choice for extensive life insurance coverage with living benefits.
Life Insurance with Living Benefits: Buying Guide
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.
How to Find the Best Life Insurance with Living Benefits
Finding the best life insurance doesn't have to be overwhelming. Follow this step-by-step guide to choose living benefits life insurance that protects you during life and provides for your family after death.
- 1
Calculate your coverage amount
Start by determining how much life insurance you need. Most financial experts recommend coverage equal to 10 to 12 times your annual income, but living benefits can reduce this requirement since you'll access some funds while alive.
Calculate your family's expenses without your income, including mortgage payments, education costs and daily living expenses. Then add potential medical costs you might face during a serious illness. Using living benefits reduces your death benefit, so ensure your coverage amount accounts for this reduction.
- 2
Choose your living benefits riders
Different riders serve different purposes, so select based on your health risks and family history. Terminal illness benefits are typically included at no extra cost, while other riders require additional premiums.
Consider chronic illness riders if you're concerned about conditions requiring long-term care. Choose critical illness coverage if you have a family history of heart disease, cancer or stroke. Add long-term care riders if you want to age in place with more flexibility than traditional long-term care insurance offers.
- 3
Research insurance companies
Choose an insurer with strong financial stability ratings from AM Best, Moody's and/or Standard & Poor's. This ensures the company can meet its obligations when you need to file a claim.
Research customer satisfaction scores and claims-paying history through J.D. Power ratings and state insurance department complaint ratios. Companies with efficient claims processing make accessing living benefits smoother during health crises.
- 4
Compare premium costs
Get quotes from multiple insurers since premiums vary for the same coverage. Request quotes with and without living benefits riders to understand the additional cost and decide if they're worth it.
Compare total costs over your policy's life, not just initial rates. Some insurers offer lower introductory premiums that increase over time, while others maintain level premiums throughout the policy term.
- 5
Complete your health assessment
Be honest during medical underwriting, as undisclosed health conditions can void coverage when you need it most. Your current health affects both premium costs and eligibility for living benefits.
Consider timing your application based on your health status. If you're healthy now but have a family history of specific conditions, applying sooner locks in better rates before potential health changes occur.
MAKE AGE-APPROPRIATE DECISIONS
Your age affects insurance needs and living benefits value. Younger applicants pay lower premiums and have more time to build policy value, making riders more cost-effective long-term.
If you're in your 20s or 30s, focus on adequate life insurance coverage first, then add riders as income and health risks increase. Those in their 40s and 50s should consider permanent coverage as health risks rise. Applicants 60 and older should evaluate whether life insurance still makes financial sense or if direct health coverage might be more appropriate.
Life Insurance with Living Benefits Quotes
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.
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What Are Living Benefits in Life Insurance?
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 still alive under certain conditions. These benefits provide financial protection when you're diagnosed with a terminal illness, need long-term care or can't perform basic living activities due to a chronic illness. Specific qualifying conditions and benefit amounts vary by policy and insurer.
Usually, a medical diagnosis that shortens life expectancy or requires ongoing medical care will trigger these benefits. You can use these funds to cover medical expenses, pay for in-home care or settle everyday bills, helping you maintain your quality of life.
Using living benefits reduces the death benefit payout to your beneficiaries when you die. Consider this when evaluating the financial impact on your dependents.
Types of Living Benefits in Life Insurance
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.
UNDERSTAND THE FINE PRINT OF LIVING BENEFITS
Your insurance contract details the eligibility criteria for living benefits, the percentage of the death benefit you can access and the covered conditions. Review these details carefully and consult with your insurance provider to fully understand the scope and implications of your living benefits coverage.
Living Benefits Life Insurance: Is It Right for You?
Paying extra for living benefits makes sense for some people but not others. These riders add to your premium costs but provide financial protection by letting you access part of your death benefit early if you become seriously ill. Here's how to determine if they fit your needs and budget.
Consider living benefits if you fit these situations:
Your family has a history of chronic illness
If your family has a history of chronic or terminal illnesses, living benefits may be worthwhile since family medical history can help determine what illnesses you may encounter.
You're diagnosed with a chronic illness
Living benefits give you access to funds for medical expenses if you have a chronic illness.
You're diagnosed with an illness that reduces your lifespan
Living benefits can help you prepare financially if you have an illness that reduces your lifespan.
You may need long-term care
Long-term care costs can be high, and living benefits can help cover these expenses if you expect to need care in the future.
When Not to Buy Life Insurance Living Benefits
Living benefits may not be necessary or beneficial for everyone. Instead, find the best life insurance policies for your situation by looking for providers that balance cost and customer service. This ensures you and your beneficiaries are protected.
Skip living benefits in these scenarios:
You have sufficient savings and investments
Substantial savings, investments or other resources may eliminate the need for the additional financial safety net that living benefits provide.
You already have comprehensive health and disability insurance
If you have extensive health insurance coverage and disability insurance, these policies may already provide adequate financial support during a serious illness or disability.
You want lower premiums
Choosing life insurance without living benefits reduces premiums, which is smart if you're focused on cost savings.
Your life insurance policy is mainly for estate planning
If your policy's primary purpose is to transfer wealth or leave a legacy, maintaining the full death benefit for beneficiaries is more important than accessing funds early.
You have short-term coverage needs
Life insurance for short-term financial obligations, such as covering a loan, may not need living benefits.
You have specific end-of-life preferences
You may have plans for your end-of-life care that don't require the additional funds that living benefits offer.
Consider your financial strategy, health status and coverage needs when deciding whether to include living benefits.
Best Term Life Insurance with Living Benefits: Bottom Line
Life insurance policies with living benefits provide financial flexibility by allowing access to a portion of the death benefit during serious illness. Protective is the best provider, offering comprehensive rider options and competitive premiums. Lincoln Financial and Nationwide 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.
Living Benefits in Life Insurance: FAQ
Here are frequently asked questions about life insurance with living benefits.
Which company provides the best life insurance with living benefits?
Protective is the top life insurance provider with living benefits, earning a MoneyGeek score of 96 out of 100. Lincoln Financial is a strong runner-up and offers the best value for those seeking affordability. For those who prioritize customer service, Nationwide is a good option.
Is life insurance with living benefits worth it?
It depends on your situation. Living benefits work best for people with families who have a history of chronic or critical illnesses, those who may need long-term care or those who already have an illness that reduces their lifespan.
What are life insurance living benefits?
A living benefits rider, also known as accelerated death benefits, lets you receive a portion of your policy's death benefit if you're diagnosed with a terminal illness that leaves you with less than two years to live. You can use these funds for medical costs or to make your life more comfortable.
What is the difference between living benefits and accelerated death benefits?
Living benefits and accelerated death benefits are the same thing. They're different terms for the same type of life insurance rider.
What conditions qualify for living benefits?
Qualifying conditions vary by insurer and rider type but typically include terminal illnesses with a life expectancy of under 24 months, chronic illnesses requiring help with daily activities, critical illnesses like heart attack or stroke, and conditions requiring long-term care. Each insurer maintains its own list of covered conditions and qualification requirements.
Can you use living benefits more than once?
Yes, you can typically use living benefits multiple times until you reach your policy's maximum benefit limit. However, each withdrawal reduces your remaining death benefit. Some riders provide ongoing monthly payments, while others offer one-time lump sums depending on your condition and chosen coverage options.
Do living benefits reduce the death benefit?
Yes, any living benefits you receive reduce your policy's death benefit dollar-for-dollar. If you withdraw funds while alive, your beneficiaries receive the remaining death benefit amount after your death. Some policies may also deduct interest or administrative fees from the remaining benefit amount.
What's the difference between living benefits and critical illness insurance?
Living benefits are riders attached to life insurance policies that provide access to your death benefit while alive. Critical illness insurance is a standalone coverage that pays a lump sum upon diagnosis of covered conditions. Living benefits reduce your death benefit, while critical illness insurance doesn't affect other coverage.
How long does it take to receive living benefits?
Living benefits processing typically takes 30 to 60 days after you submit the required documentation. The timeline depends on your insurer's review process, medical documentation requirements and the complexity of your claim. Some insurers offer expedited processing for terminal illness claims to provide faster access to funds.
Are living benefits taxable?
Living benefits are generally not taxable income when received, as they're considered an advance on your life insurance death benefit. However, any interest earned on withdrawn amounts may be taxable. Consult a tax professional for guidance specific to your situation, as tax rules can vary based on policy structure and withdrawal amounts.
What percentage of the death benefit can you access?
The percentage varies by insurer and rider type, but most policies allow access to a portion of your death benefit while maintaining some amount for beneficiaries. Terminal illness benefits often provide the highest access levels, while chronic illness and long-term care riders typically offer lower percentages or monthly payment structures.
Can you add living benefits to existing policies?
Adding living benefits to existing policies depends on your insurer's rules and policy type. Some companies allow adding riders during specific periods or policy anniversaries, while others only offer living benefits on new policies. Contact your insurer to discuss available options for your specific policy.
Do all life insurance companies offer living benefits?
No, not all life insurance companies offer living benefits riders. However, most major insurers provide some form of living benefits coverage, with terminal illness benefits being the most common. Coverage options, qualifying conditions and costs vary significantly between insurers, so compare multiple companies when shopping for living benefits coverage.
Best Life Insurance Companies with Living Benefits: Our Review Methodology
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, creating a MoneyGeek score out of 100.
Our scoring priorities reflect real-world decision factors:
- Affordability (30%): Your monthly premium directly impacts your budget and whether you can maintain coverage long-term
- Financial stability (25%): The company needs strong finances to pay claims decades from now, especially for living benefits that might be claimed sooner than death benefits
- Buying process (20%): Life insurance with living benefits involves complex decisions, so we prioritized companies with clear online materials and streamlined purchasing
- Customer satisfaction (15%): We analyzed complaint data from state insurance departments to identify companies that handle claims fairly
- Product diversity (10%): More options mean better chances of finding coverage that matches your specific health and financial situation
We gathered this data through direct quote requests, AM Best financial ratings, NAIC complaint indices, 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.
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About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.
sources
- J.D. Power. "2024 U.S. Individual Life Insurance Study." Accessed July 24, 2025.