Living benefits in life insurance allow policyholders to access part of their death benefit early in the event of a qualifying medical condition, offering a financial safety net when it's most needed. Individual policy details and the nature of the policyholder's health condition typically determine the specific amount accessible through living benefits. Keep in mind that living benefits may lead to higher premium rates depending on the insurance provider and policy features.
Best Life Insurance Companies for Living Benefits in 2025
Updated: January 8, 2025
Advertising & Editorial Disclosure
Key Takeaways
Nationwide ranks as the best life insurance provider for living benefits, earning a MoneyGeek score of 97, with a $250,000 10-year term policy costing $16 per month on average.
Mutual of Omaha is the second-best choice for living benefits, scoring 95, offering a $250,000 10-year term policy for $17 monthly with options for chronic, critical, and terminal illness riders.
Allstate is the most affordable life insurance provider for living benefits, earning a MoneyGeek score of 97 and offering a $250,000 10-year term policy for just $12 per month.
Why Trust MoneyGeek? We analyzed 1,488 life insurance quotes alongside customer satisfaction, financial stability reports, product offerings and more to determine the best life insurance companies for living benefits.
Coverage costs and company information for life insurance providers were updated in 2024.
1,488
Quotes Analyzed
14
Companies Compared
50
ZIP Codes
Best Overall Life Insurance Company for Living Benefits
Nationwide, with a MoneyGeek score of 97, stands out as MoneyGeek's best life insurance company for policies with living benefits. On average, a Nationwide 10-year term policy with a $250,000 coverage amount costs $16 per month.
Note that adding optional riders, such as living benefits, may increase premium rates.
How was this MoneyGeek score calculated?
To evaluate and rank life insurance providers, MoneyGeek applied these weightings:
- Affordability: 30%
- Financial Stability: 25%
- Buying Process: 20%
- Customer Satisfaction: 15%
- Product Diversity: 10%
Premiums are from quotes for a 10-year term policy with a $250,000 coverage amount. The sample profile used for obtaining these quotes includes:
- 40-year-old male
- Non-smoker
- 5 feet 11 inches tall and 175 pounds
- Excellent health rating
Best for Living Benefits: Nationwide
pros
Comprehensive rider options for chronic and critical illness
Robust financial stability with A+ AM Best rating
Diverse product offerings, including no-exam policies
cons
Limited options for term policy length
Affordability score indicates room for improvement
COMPANY HIGHLIGHTS
Nationwide boasts 97 years of experience in the life insurance sector, offering a broad array of products that cater to diverse coverage needs. Its life insurance options include term, whole and universal policies, complemented by a selection of riders for living benefits covering chronic, critical and terminal illness, in addition to long-term care. These options allow policyholders to draw from their policies in the event of severe health issues. Nationwide's dedication to a streamlined purchasing experience, excellent customer satisfaction and solid financial stability make it an optimal choice for those seeking extensive life insurance coverage with the added security of living benefits.
Best Life Insurance Company for Living Benefits: Runner-Up
Mutual of Omaha comes in second in our ranking of the best life insurance companies for living benefits, earning a MoneyGeek score of 95. The company offers a $250,000 10-year term policy at an average of $17 monthly, with the option to add living benefits like chronic, critical and terminal illness riders.
Runner-Up: Mutual of Omaha
pros
A+ rated financial stability
Over a century of industry experience
Wide range of policy options
cons
No 24/7 online chat support
Rider availability varies by state
No dedicated mobile app for customers
COMPANY HIGHLIGHTS
Mutual of Omaha, with 114 years in the life insurance business, has earned its place as one of our top providers, particularly for living benefits. The company's range of life insurance products, from term to universal, along with riders for chronic, critical and terminal illnesses, cater to diverse customer needs. Coverage starts at $100,000 with terms of up to 30 years. Despite no mobile app and limited online support, its A+ financial rating and customer satisfaction levels speak to its reliability and commitment to tailored insurance solutions.
Best Cheap Life Insurance Company for Living Benefits
Allstate is MoneyGeek’s best cheap life insurance company for living benefits, receiving the highest affordability rating. It has a MoneyGeek score of 97, the highest in this category. An Allstate 10-year term policy with a $250,000 coverage costs an average of $12 monthly.
How was this MoneyGeek score calculated?
We calculated MoneyGeek scores based on five factors, which are weighted as:
- Affordability: 50%
- Financial Stability: 15%
- Buying Process: 20%
- Customer Satisfaction: 5%
- Product Diversity: 10%
Rates are based on life insurance quotes for a 10-year term policy with a $250,000 coverage. To gather quotes, we used the following sample profile:
- 40-year-old male
- Non-smoker
- 5 feet 11 inches tall and 175 pounds
- Excellent health rating
Best Cheap: Allstate
pros
Low-cost term life options
Wide range of term lengths available
Accessible customer service with online chat
cons
Higher-than-average customer complaint rate
Living benefit riders may vary by state
COMPANY HIGHLIGHTS
Allstate has distinguished itself as the best budget-friendly option for life insurance with living benefits, providing a cost-effective solution without compromising product diversity or financial stability. With 92 years of service, Allstate offers term life insurance coverage ranging from $100,000 to an impressive $50 million and term lengths from 10 to 40 years, catering to a wide demographic. The company's commitment to accessibility is evident through its multiple payment options, online resources and 24/7 customer support. While riders for accelerated care, chronic illness and terminal illness enhance the policy's value, they are subject to state-specific terms, ensuring that Allstate has tailored its offerings to meet necessary regulatory requirements in addition to the needs of its customers.
Living Benefits Explained
Living benefits in life insurance policies, sometimes referred to as accelerated death benefits, refer to the provisions that allow the policyholder to receive a portion of the death benefit while still alive under certain conditions. These benefits are designed to provide financial relief in situations where the policyholder is diagnosed with a terminal illness, requires long-term care or is unable to perform basic living activities due to a chronic illness.
The specifics of living benefits can vary widely among policies and insurers. Typically, a medical diagnosis that significantly shortens life expectancy or necessitates substantial and ongoing medical care will trigger these benefits. You can use the funds from living benefits for a variety of purposes, such as covering medical expenses, paying for in-home care, or even settling everyday bills, allowing the policyholder to maintain their quality of life.
Accessing living benefits reduces the death benefit payout to beneficiaries upon the policyholder's death. Consider this aspect when evaluating the long-term financial impact on your dependents.
MONEYGEEK EXPERT TIP
Your insurance contract will detail the eligibility criteria for living benefits, the percentage of the death benefit you can access and the specific covered conditions. We recommend reviewing these details carefully and consulting with your insurance provider to fully understand the scope and implications of the living benefits included in your life insurance policy.
Who Should Consider a Life Insurance Policy With Living Benefits
A life insurance policy with living benefits may offer a financial safety net, but if it’s not already part of your default inclusions, it’s helpful to evaluate your situation to determine whether you should add it. After all, you may not want to pay extra for a benefit you aren’t likely to use.
We review some situations below to illustrate when a living benefit add-on is a good idea.
Your family has a history of chronic illness
Your family’s medical history can help determine what types of illnesses or problems you may encounter. If your family has had a history of chronic or terminal illnesses, it may be a good idea to get a living benefit.
You are diagnosed with a chronic illness
If you have been diagnosed with a chronic illness, you may want to get a life insurance policy with a living benefit. These policies ensure you have access to extra funds should you need them for medical expenses.
You are diagnosed with an illness that reduces your lifespan
If you are diagnosed with an illness that reduces your lifespan, getting a living benefit can help you prepare for anything unexpected.
You may need long-term care
Long-term care can be costly. If you expect to need care in the future, getting a living benefit can help you pay for the costs.
MONEYGEEK EXPERT TIP
If your circumstances differ from the ones mentioned above, you may want to forgo a living benefits rider. Instead, find the best life insurance policies for your situation by looking for providers that balance cost and customer service. This way, you can rest easy knowing that you and your beneficiaries are cared for.
When Not to Buy a Living Benefits Plan
While living benefits in a life insurance policy can offer valuable financial protection in times of health crises, they may not be necessary or beneficial for everyone. Here are some scenarios where opting out of living benefits might make sense.
You have sufficient savings and investments
Individuals with substantial savings, investments or other resources may not need 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 the necessary financial support in the event of a serious illness or disability.
You want lower insurance premiums
Choosing a life insurance policy without living benefits can sometimes lower premiums. For consumers prioritizing cost savings on premiums, forgoing living benefits might be a strategic choice.
Your life insurance policy is mainly for estate planning
If the primary purpose of the life insurance policy is to transfer wealth or leave a legacy, maintaining the full death benefit for beneficiaries might be more important than accessing the funds early.
You have short-term coverage needs
Policyholders with life insurance for short-term financial obligations, such as covering a loan, may not find living benefits as necessary.
You have specific end-of-life preferences
Some may have set plans for their end-of-life care that do not require the additional funds that living benefits would provide.
Remember to consider your overall financial strategy, health status and coverage needs when deciding whether to include living benefits in your life insurance policy.
FAQ About the Best Life Insurance Companies for Living Benefits
Review some of the most frequently asked questions below about the best life insurance with living benefits.
Which company provides the best life insurance with living benefits?
Nationwide stands out as the top life insurance provider with living benefits, earning a MoneyGeek score of 97. Mutual of Omaha is a strong runner-up, while Allstate offers the best value for those seeking affordability.
Is life insurance with living benefits worth it?
Whether it's worth it depends on your situation. A living benefits rider is best for those whose family has 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 an accelerated death benefit rider, allows you to get a portion of your policy’s base death benefit if you are diagnosed with a terminal illness that leaves you less than two years to live. These funds aim to help you with medical costs or ways to make your life more comfortable.
What is the difference between living benefits and accelerated death benefits?
There is no difference between living benefits and accelerated death benefits. They are different terms for the same type of life insurance rider.
Life Insurance
Life Insurance
Life Insurance
Life Insurance
Life Insurance
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.