Banner Life is the best overall life insurance company for living benefits. Other providers excel in affordability or customer service.
Best Living Benefits Life Insurance Companies (2026)
Banner Life is MoneyGeek's top pick for life insurance with living benefits in 2026. Rates start at $37 per month, and its accelerated death benefit is included at no extra cost
Find out if you're overpaying for life insurance below.
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Updated: September 8, 2026
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Key Takeaways
Banner Life, Transamerica, Nationwide and Pacific Life are top-rated life insurance providers that offer 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+ | 4.3 |
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 vary based 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 EACH CUSTOMER EXPERIENCE SCORE MEANS
- AM Best rating: AM Best evaluates insurers' financial strength from A++ to D; an A+ rating means Banner Life has a superior ability to pay claims)
- BBB Rating: Better Business Bureau (BBB) ratings range from A+ (highest) to F (lowest) and indicate how businesses interact with customers and handle complaints.
- NAIC complaint index: The national baseline is 1.00; a score below 1.00 means fewer complaints than the industry average)
- J.D. Power: The Individual Life Insurance Study measures customer experiences and opinions of life insurers to rank policyholders' satisfaction with their companies.
What Are Living Benefits in Life Insurance?
Living benefits in life insurance policies, sometimes called accelerated death benefits, are provisions that let you draw on part of your death benefit before you die, typically after a qualifying medical diagnosis.
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, which helps 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 based 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
Compare life insurance with living benefits to protect your finances now and leave support for 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 at least three insurers. Premiums for the same coverage amount and term can vary by $20 or more per month across companies, depending on how each one weighs your age, health and rider selections.
- 5Complete Your Health Assessment
Be honest during medical underwriting. Undisclosed health conditions can void coverage.
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Is Living Benefits Life Insurance Right for You?
Living benefits riders add to your premium costs but provide financial protection, as they let 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. Living benefits are worth it in these situations:
Your Family Has a History of Chronic IllnessA family history of heart disease, cancer or diabetes raises your own risk of a similar diagnosis. Living benefits riders pay out when you're diagnosed with a covered condition, so you can draw on part of your death benefit for treatment and care costs while still alive.
You're Diagnosed with a Chronic IllnessChronic conditions, such as diabetes, COPD or heart disease, often require ongoing home care and medical equipment costs that health insurance doesn't fully cover. A chronic illness rider pays monthly benefits based on a percentage of your death benefit. You can direct those funds toward caregiving, home modifications or facility stays.
You're Diagnosed with an Illness That Reduces Your LifespanA terminal diagnosis triggers the accelerated death benefit. Most insurers allow policyholders to access 25% to 100% of the death benefit while still alive. Those funds can cover end-of-life care or outstanding debts before you pass.
You May Need Long-term CareIn its 2025 Long-Term Care Index, Milliman found that 65-year-olds need to set aside an average of $135,000 for future care costs. Women average $171,000 because they live longer and are less likely to have a spouse providing unpaid care. A long-term care rider can offset those expenses without draining your savings.
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, it's more important to maintain the full death benefit for beneficiaries than to access funds early.
You Have Short-Term Coverage NeedsLife insurance for short-term financial obligations, such as covering a loan, doesn't 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 overall for rider availability and financial strength. Transamerica matches its price but carries a higher complaint rate. Nationwide is the stronger pick if customer experience matters most. Pacific Life suits buyers who want the broadest coverage options.
Identify which living benefits rider fits your health risks, terminal illness, chronic illness, critical illness or long-term care, then compare quotes from at least three of these insurers against that specific need.
Living Benefits in Life Insurance: FAQ
Banner Life is the top life insurance provider with living benefits. Transamerica is the runner-up. Nationwide is best for customer service, while Pacific Life has the best coverage options.
Monthly rates for these four companies range from $37 to $56 for a 40-year-old nonsmoker with a 20-year, $500,000 term policy.
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.
A living benefits rider lets you draw on part of your life insurance death benefit before you die. The benefit activates after a qualifying medical diagnosis, such as a terminal illness, and pays out while you're still alive.
Eligibility depends on your insurer and the rider type attached to your policy. Terminal illness with limited life expectancy, chronic conditions that limit daily activities, major medical events like heart attacks or strokes, and illnesses requiring extended care are the most common qualifying triggers.
Your policy spells out the exact conditions and documentation required, so review those details before you buy.
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.
It depends on the rider type. Chronic illness and long-term care riders are usually designed for repeated use. You receive monthly payments over time rather than a single payout. Terminal illness and critical illness riders generally pay out once as a lump sum, since they're tied to a single qualifying diagnosis.
In either case, most policies cap total lifetime payouts at 50% to 90% of your death benefit. Each withdrawal reduces what your beneficiaries receive.
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.
Life insurance with living benefits lets you use a part of your death benefit before you die. Four rider types cover different conditions: terminal illness, chronic illness, critical illness and long-term care. Each pays out as either a lump sum or monthly benefits. Any amount you receive from these riders will reduce the death benefit left for your beneficiaries.
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 based on the factors that matter 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.
We tested term lengths and coverage amounts across multiple combinations to map pricing patterns.
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About Mark Fitzpatrick
Mark Fitzpatrick is a licensed Property and Casualty (P&C) Insurance Producer and MoneyGeek's resident expert in insurance and economics. In nearly a decade covering the insurance market at LendingTree and MoneyGeek, he's analyzed hundreds of carriers and millions of rates across auto, home, renters, health and life insurance.
His work has appeared in The Washington Post, The New York Times and NPR. He draws on independent cost and consumer experience data, and no insurance company partnerships affect his recommendations.
Mark studied at Boston College and later earned a master's in economics and international relations from Johns Hopkins University. He worked in financial risk management at State Street before joining MoneyGeek. He's also a five-time “Jeopardy!” champion.
Sources
- Milliman AI Solutions. "2025 Milliman Long-Term Care Index." Accessed August 31, 2026.