Banner Life is the best overall life insurance company for living benefits. Other providers excel in affordability or customer service. The 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
Banner Life is the best life insurance company for living benefits, scoring 4.5 out of 5 with comprehensive rider options.
Find out if you're overpaying for life insurance below.
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Updated: May 19, 2026
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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 | 4.5 | $37 (F); $46 (M) |
Runner-Up | Transamerica | 4.4 | $37 (F); $46 (M) |
Customer Experience | Nationwide | 4.4 | $45 (F); $56 (M) |
Coverage Options | Pacific Life | 4.2 | $38 (F); $54 (M) |
The rates above are based on average quotes for a 20-year-term policy for 40-year-old nonsmokers with average health and wealth. 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 Points
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 Points
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 Points
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 Points
Average Monthly Cost
$38 (women) $54 (men)Max Coverage
$10 million
Life Insurance with Living Benefits: Buying Guide
Choosing life insurance with living benefits is straightforward. The following below compare living benefits rider options, evaluate living benefits costs and explain living benefits eligibility. This guide helps you find a life insurance policy that protects your loved ones and supports you financially if you experience a serious illness.
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 the steps below 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.
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.
Life Insurance Rates by Age, Gender and Coverage
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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 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?
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.
Types of Living Benefits in Life Insurance
Life insurance with living benefits offers four main types of coverage. Each one lets you access your death benefit under different circumstances. Knowing these options helps you pick the right protection for your 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 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 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.
DO ALL LIFE INSURANCE COMPANIES OFFER LIVING BENEFITS?
Not all life insurance companies offer living benefits riders, but 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 between insurers, so compare multiple companies when shopping for living benefits coverage.
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 Life Insurance with Living Benefits: Bottom Line
Life insurance policies with living benefits allow policyholders to access part of their death benefit during qualifying illnesses, offering added flexibility while the policy is active. Banner Life ranks highest based on rider availability and pricing.
Transamerica, Nationwide and Pacific Life also offer policies that fit different coverage needs and budgets. Reviewing policy features, coverage limits and costs can help you choose a life insurance option with living benefits that fits your situation.
Living Benefits in Life Insurance: FAQ
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. Nationwide is a strong runner-up. For those who prioritize customer service, Transamerica is a good option. 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.
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.
- Affordability (50%)
- Customer Experience (30%)
- Coverage Options (20%)
We gathered this data through direct quote requests, AM Best financial ratings, J.D. Power customer satisfaction ratings, NAIC complaint indices, online customer reviews 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.
Top-Rated Life Insurance for Living Benefits: 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 has produced original research on hundreds of carriers and millions of rates across auto, home, renters, health and life insurance.
He writes about economics and insurance on MoneyGeek so people can make coverage decisions with confidence. His insurance insights have been featured in The Washington Post, The New York Times and NPR, among other media outlets.
Like all MoneyGeek analysts, he draws on independent cost and consumer experience data, and no insurance company partnership influences his recommendations.
Fitzpatrick earned his degrees from Johns Hopkins University (M.A. Economics and International Relations) and Boston College (B.A.). He began his career in financial risk management at State Street. He's also a five-time Jeopardy champion!