Best Life Insurance Companies for Living Benefits in January 2024


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Updated: May 22, 2024

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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.

MoneyGeek found that Nationwide excels as the premier choice among life insurance companies offering these benefits, garnering an overall MoneyGeek score of 97. Mutual of Omaha comes in second place, while Allstate provides a competitive option for individuals who value affordability.

MoneyGeek Logo IconBest LifeInsurance CompaniesLiving Benefits
2024

Best Life Insurance Companies for Living Benefits in 2024

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.

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Coverage costs and company information for life insurance providers were updated in 2024.

1,488Quotes Analyzed
 
14Companies Compared
 
50ZIP Codes

Key Takeaways

Living benefits allow you to get a percentage of your policy’s base payout if you are diagnosed with a qualifying illness.

A living benefit may be part of your policy or available as an add-on. It's best suited for those whose family has a history of chronic or critical illnesses.

Terminal illnesses like advanced cancer or chronic illnesses such as diabetes are examples of illnesses that could trigger a living benefits rider.

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?

Best for Living Benefits: Nationwide

Nationwide

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Comprehensive rider options for chronic and critical illness

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Robust financial stability with A+ AM Best rating

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Diverse product offerings, including no-exam policies

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Limited options for term policy length

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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

Mutual of Omaha

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A+ rated financial stability

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Over a century of industry experience

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Wide range of policy options

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No 24/7 online chat support

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Rider availability varies by state

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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?

Best Cheap: Allstate

Allstate

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Low-cost term life options

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Wide range of term lengths available

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Accessible customer service with online chat

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Higher-than-average customer complaint rate

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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.

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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.

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    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.

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    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.

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    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.

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    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.

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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.

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    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.

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    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.

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    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.

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    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.

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    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.

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    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.

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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?
Is life insurance with living benefits worth it?
What are life insurance living benefits?
What is the difference between living benefits and accelerated death benefits?

About Mark Fitzpatrick


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Mark Fitzpatrick is a Licensed Property and Casualty Insurance Producer and MoneyGeek's Head of Insurance. He has analyzed the insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. He has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.

Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.