Banner Life is the best overall life insurance company for living benefits. Other providers excel in affordability or customer service. This table shows a quick comparison to help you find the best life insurance plans with living benefits for your health and financial protection needs:
Best Living Benefits Life Insurance Companies (2026)
Banner Life is the best life insurance company for living benefits in 2026 with competitive monthly rates and comprehensive rider options.
Find out if you're overpaying for life insurance below.
Select age group
Updated: June 25, 2026
Advertising & Editorial Disclosure
Key Takeaways
Banner Life, Transamerica, Nationwide and Pacific Life 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?
Overall | Banner Life | $37 (F), $46 (M) | A+ | 4.5 |
Runner-Up | Transamerica | $37 (F), $46 (M) | A | 4.4 |
Customer Experience | Nationwide | $45 (F), $56 (M) | A+ | 4.4 |
Coverage Options | Pacific Life | $38 (F), $54 (M) | A+ | 4.2 |
The rates above are based on average quotes for a 20-year-term policy for 40-year-old nonsmokers with average health and height. Actual premiums will vary depending on your profile and coverage needs.
Best Overall: Banner Life
Banner Life
MoneyGeek Rating
4.5/ 5
5/5Affordability
3.7/5Customer Experience
4.5/5Coverage
Average Monthly Cost
$37 (women), $46 (men)Max Coverage
$10 million
Runner-Up: Transamerica
Transamerica
MoneyGeek Rating
4.4/ 5
4.9/5Affordability
3.7/5Customer Experience
4.4/5Coverage
Average Monthly Cost
$37 (women), $46 (men)Max Coverage
$10 million
Best Customer Experience: Nationwide
Nationwide
MoneyGeek Rating
4.3/ 5
4.3/5Affordability
4.8/5Customer Experience
3.8/5Coverage
Average Monthly Cost
$45 (women), $56 (men)Max Coverage
$1.5 million
Best Coverage Options: Pacific Life
Pacific Life
MoneyGeek Rating
4.2/ 5
4.4/5Affordability
3.6/5Customer Experience
4.5/5Coverage
Average Monthly Cost
$38 (women), $54 (men)Max Coverage
$10 million
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 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.
CAN YOU ADD LIVING BENEFITS TO EXISTING POLICIES?
Whether you can add living benefits to an existing policy comes down to your insurer and the policy type. Not every company allows it after issue. Some restrict living benefits to new policies entirely. Others open the option only at specific periods or policy anniversaries.
Types of Living Benefits in Life Insurance
Life insurance with living benefits comes in four types, each tied to a different health condition or financial trigger. The best fit depends on your health risks and what you need the money to do.
Terminal Illness BenefitsTerminal 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 often 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 have 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 contract spells out the eligibility criteria for living benefits, the percentage of the death benefit you can access and the covered conditions. Go through these details with your insurance provider before you commit, since the scope and payout limits vary more than most people expect.
How to Find the Best Life Insurance with Living Benefits
Finding the best life insurance can feel complicated, but it doesn’t have to. Use these steps to compare living benefits life insurance, so you can get protection while you’re living and support your family later.
- 2Choose Your Living Benefits Riders
Different riders serve different purposes, so select based on your health risks and family history.
- 3Research Insurance Companies
Choose an insurer with strong financial stability ratings from AM Best, Moody's and Standard & Poor's.
- 4Compare Premium Costs
Get quotes from multiple insurers since premiums vary for the same coverage.
- 5Complete Your Health Assessment
Be honest during medical underwriting, as undisclosed health conditions can void coverage.
Estimate Your Life Insurance Cost
Get average term life insurance premiums based on your profile.
Select Age
Select Gender
Select Term
Select Coverage Level
Average Monthly Rate—
Select Age
Average Monthly Rate—
Select Gender
Select Term
Select Coverage Level
Is Living Benefits Life Insurance Right for You?
Living benefits 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. For some people, that cost is worth it. For others, it isn't. Here's how to determine if they fit your needs and budget. Living benefits are worth it in these situations:
Your Family Has a History of Chronic IllnessIf 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 IllnessLiving benefits give you access to funds for medical expenses if you have a chronic illness.
You're Diagnosed with an Illness That Reduces Your LifespanLiving benefits can help you prepare financially if you have an illness that reduces your lifespan.
You May Need Long-term CareLong-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 aren't the right fit for everyone. If cost and customer service matter more to you, our guide to the best life insurance policies walks you through providers that balance both.
Skip living benefits in these scenarios:
You Have Sufficient Savings and InvestmentsSubstantial 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 PremiumsChoosing 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 PlanningIf 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 NeedsLife 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.
Your financial strategy, health status and coverage needs should drive the decision on whether to include living benefits.
Best Life Insurance with Living Benefits: Bottom Line
Life insurance with living benefits lets you tap part of your death benefit during a qualifying illness, without waiting until death to see a payout. Banner Life ranks highest for rider availability and pricing.
Transamerica, Nationwide and Pacific Life round out the top options, each suited to different coverage needs and budgets. Policy features, coverage limits and costs all shift the math, so compare them directly against your health profile and financial goals.
Living Benefits in Life Insurance: FAQs
Have questions about living benefits in life insurance? Our answers help you make the right decision.
Which company provides the best life insurance with living benefits?
Banner Life is the top life insurance provider with living benefits, earning a MoneyGeek score of 4.5 out of 5. Transamerica is the runner-up with a score of 4.4. Nationwide is best for customer service, while Pacific Life has the best coverage options.
Is life insurance with living benefits worth it?
It depends on your situation. Living benefits may appeal to people with family histories of chronic or critical illness, those planning for possible long-term care needs or individuals managing an existing condition that may affect life expectancy.
What are life insurance living benefits?
Living benefits are added through a rider that allows early access to part of a life insurance policy’s death benefit. This option becomes available after certain medical diagnoses, such as a terminal illness, rather than only paying out after death.
What conditions qualify for living benefits?
Living benefits eligibility depends on the insurer and the type of living benefits rider attached to your life insurance policy. Common qualifying events for living benefits include terminal illnesses with limited life expectancy, chronic conditions that limit daily activities, major medical events such as heart attacks or strokes, and illnesses that require extended care.
Your life insurance policy details outline the exact conditions and requirements for living benefits.
Do living benefits reduce the death benefit?
Yes, any amount taken through living benefits is deducted from the policy’s death benefit. After those withdrawals, beneficiaries receive the remaining amount. Some policies also apply interest or administrative charges that further reduce the final payout.
Can you use living benefits more than once?
Yes, some policies allow multiple uses of living benefits until the maximum benefit limit is reached. Each withdrawal lowers the remaining death benefit. Depending on the rider, benefits may be paid as a lump sum or through scheduled payments.
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.
Our Review Methodology
Life insurance with living benefits pays your beneficiaries when you die and puts cash in your hands if a qualifying serious illness strikes first. We researched which companies do both well, with an eye on cost and coverage depth.
Our Research Approach
We built a scoring system around the factors that count most when you buy life insurance with living benefits. Each category is worth up to five points.
- Affordability (50%)
- Customer Experience (30%)
- Coverage Options (20%)
Our data comes from direct quote requests, AM Best financial ratings, J.D. Power customer satisfaction scores, NAIC complaint indices and customer reviews. We limited the pool to companies with broad national coverage and online quote tools.
Standard Quote Profile
Our rate comparisons use this baseline customer:
- 40-year-old male
- Nonsmoker
- 5'9" and 160 pounds
- Average health rating
We adjusted this profile by age, gender, location, health status and tobacco use to capture how rates shift across customer types. All premium data follows this standardized approach unless noted otherwise.
Term lengths and coverage amounts were tested across multiple combinations to map pricing patterns. Those trends pointed us to which companies offer the most competitive rates for living benefits riders across different profiles.
Related Articles
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty (P&C) Insurance Producer in Connecticut, is MoneyGeek's resident insurance expert. He has spent nearly a decade analyzing the market, first at LendingTree and now at MoneyGeek, where he produces original research on hundreds of carriers and millions of rates across auto, home, renters, health and life insurance.
He covers economics and insurance at MoneyGeek, and his work has been featured in The Washington Post, The New York Times and NPR, among other outlets.
Like all MoneyGeek analysts, he draws on independent cost and consumer experience data. No insurance company partnership influences his recommendations.
Mark holds a B.A. from Boston College and an M.A. in Economics and International Relations from Johns Hopkins University. He started his career in financial risk management at State Street and is also a five-time “Jeopardy!” champion.