Nationwide is the best overall life insurance company for living benefits. Other providers excel in affordability or specialized rider options. The table below shows a quick comparison to help you find the best policy for your health and financial protection needs.
Best Living Benefits Life Insurance (2025)
Updated: June 19, 2025
Advertising & Editorial Disclosure
Key Takeaways
Nationwide, Mutual of Omaha and Allstate 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, so compare coverage amounts, rider types and policy terms before buying.
What Is the Best Life Insurance Company for Living Benefits?
Companies | 10-Year Monthly Premium on $250,000 Coverage | MoneyGeek Score |
|---|---|---|
Nationwide | $16 | 97 |
Mutual of Omaha | $17 | 95 |
Allstate | $12 | 97 |
Best Overall Life Insurance Company for Living Benefits
Nationwide, with a MoneyGeek score of 97 out of 100, is the best life insurance company for policies with living benefits. A 10-year term policy with $250,000 coverage costs an average of $16 monthly.
Adding optional riders, such as living benefits, may increase premiums.
Best for Living Benefits: Nationwide
pros
Comprehensive rider options for chronic and critical illness
Strong financial stability with A+ AM Best rating
Diverse product offerings, including no-exam policies
cons
Limited options for term policy length
Affordability score indicates need for improvement
COMPANY HIGHLIGHTS
Nationwide has 97 years of experience in the life insurance sector, offering a broad array of products that cater to diverse coverage needs. The company's life insurance options include term, whole and universal policies, plus a selection of riders for living benefits covering chronic, critical and terminal illness, plus long-term care.
These options allow policyholders to access funds from their policies if they face severe health issues. Nationwide's focus on a streamlined purchasing experience, excellent customer satisfaction and solid financial stability makes it a top choice for those seeking extensive life insurance coverage with living benefits protection.
Best Life Insurance Company for Living Benefits: Runner-Up
Mutual of Omaha ranks second in our ranking of the best life insurance companies for living benefits, earning a MoneyGeek score of 95 out of 100. 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 for 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 offers life insurance products, from term to universal, along with riders for chronic, critical and terminal illnesses, which cater to diverse customer needs.
Coverage starts at $100,000 with terms of up to 30 years. Despite lacking a mobile app and having limited online support, its A+ financial rating and customer satisfaction demonstrate its reliability and commitment to tailored insurance solutions.
Best Cheap Life Insurance Company for Living Benefits
Allstate is the best cheap life insurance company for living benefits, receiving the highest affordability rating. It has a MoneyGeek score of 97 out of 100, the highest in this category. An Allstate 10-year term policy with $250,000 coverage costs an average of $12 monthly.
Best Cheap: Allstate
pros
Low-cost term life options
Multiple term length options
Accessible customer service with online chat
cons
Higher-than-average customer complaint rate
Living benefit riders vary by state
COMPANY HIGHLIGHTS
Allstate is the best budget-friendly option for life insurance with living benefits, providing a cost-effective solution without sacrificing product diversity or financial stability. With 92 years of service, Allstate offers term life insurance coverage ranging from $100,000 to $50 million and term lengths from 10 to 40 years, serving a wide demographic.
The company focuses on accessibility through multiple payment options, online resources and 24/7 customer support. Riders for accelerated care, chronic illness and terminal illness add value to policies but are subject to state-specific terms, ensuring Allstate meets regulatory requirements and customer needs.
Life Insurance Policies With Living Benefit Riders: Buying Guide
Choosing the best life insurance with living benefits doesn't have to be complicated. The sections below break it down, from comparing rider options to evaluating costs and eligibility. This guide will help you find a policy that protects your loved ones and supports you financially if you face a serious illness.
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 the death benefit while still alive under certain conditions. These benefits provide financial relief when you're diagnosed with a terminal illness, need long-term care or can't perform basic living activities due to a chronic illness.
Living benefits vary widely among policies and insurers. Typically, a medical diagnosis that shortens life expectancy or requires ongoing medical care will trigger these benefits. You can use these funds to cover medical expenses, pay for in-home care or settle everyday bills, helping you maintain your quality of life.
Using living benefits reduces the death benefit payout to beneficiaries when you die. Consider this when evaluating the financial impact on your dependents.
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.
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 included in your default coverage, evaluate your situation to determine whether you should add it. You may not want to pay extra for a benefit you're unlikely to use.
Consider living benefits if you fit these situations:
Your family has a history of chronic illness
Your family's medical history can help determine what illnesses you may encounter. If your family has a history of chronic or terminal illnesses, a living benefit may be worthwhile.
You're diagnosed with a chronic illness
Consider a life insurance policy with living benefits if you have a chronic illness. These policies give you access to funds for medical expenses.
You're diagnosed with an illness that reduces your lifespan
If you have an illness that reduces your lifespan, living benefits can help you prepare financially.
You may need long-term care
Long-term care costs can be high. If you expect to need care in the future, living benefits can help cover these costs.
When Not to Buy a Living Benefits Plan
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
People 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 adequate financial support during a serious illness or disability.
You want lower premiums
Choosing a life insurance policy without living benefits can reduce premiums. Forgoing living benefits 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
People with 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 overall financial strategy, health status and coverage needs when deciding whether to include living benefits in your life insurance policy.
Best Term Life Insurance With Living Benefits: Bottom Line
Life insurance policies with living benefits provide financial flexibility by allowing access to a portion of the death benefit during serious illness. Nationwide is the best provider, offering comprehensive rider options and affordable premiums. Mutual of Omaha and Allstate also offer strong options that serve different needs and budgets. Compare policy features, coverage amounts and costs to choose the right life insurance with living benefits.
Best Life Insurance for Early Payout Options: FAQ
Here are frequently asked questions about the best life insurance with living benefits.
Which company provides the best life insurance with living benefits?
Nationwide is the top life insurance provider with living benefits, earning a MoneyGeek score of 97 out of 100. 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?
It depends on your situation. Living benefits work best for people 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 accelerated death benefits, lets you receive a portion of your policy's death benefit if you're diagnosed with a terminal illness that leaves you with less than two years to live. You can use these funds for medical costs or to make your life more comfortable.
What is the difference between living benefits and accelerated death benefits?
Living benefits and accelerated death benefits are the same thing. They're different terms for the same type of life insurance rider.
Best Insurers Offering Accelerated Death Benefits: Our Review Methodology
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.
MoneyGeek created a scoring system to compare life insurance companies across five categories and ranked them based on their scores. We reviewed these companies based on their broad national coverage and ability to provide online quotes.
MoneyGeek’s Scoring System
Companies can earn up to five points in each category below. We used these category scores to calculate an overall MoneyGeek score out of 100. We applied the following weightings to score insurers:
- Affordability: 30%
- Financial stability: 25%
- Buying process: 20%
- Customer satisfaction: 15%
- Product diversity: 10%
Each company's score incorporates these factors:
- Cost data obtained through online quotes
- Financial strength ratings from AM Best and number of years in business
- Customer satisfaction data from the National Association of Insurance Commissioners (NAIC) customer complaint index (annual complaint data from 2020 to 2022, the most recent year available)
- Tools to aid the buying process, such as online product materials and multiple payment options
- Diversity of life insurance products
Sample Customer Profile
MoneyGeek used this standard profile to obtain life insurance quotes:
- 40-year-old male
- Nonsmoker
- 5 feet 11 inches tall and 175 pounds
- Excellent health rating
Premiums are based on this standard profile unless otherwise noted.
We modified the profile by age, gender, height, weight, tobacco use, health rating and geographic location to collect quotes and determine the best life insurance company for different types of customers. We collected quotes for term life insurance with varying term lengths and coverage amounts, too.
We identified trends in the data and used them to calculate projections and extend the data beyond what was originally collected.
Top-Rated Life Insurance for Living Benefits: Related Articles
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.