What does a "living benefits" rider typically allow the insured to do?

A "living benefits" rider typically allows the insured to withdraw part of the death benefit for specific needs while they are still alive. This feature is particularly valuable in circumstances where the insured may be facing significant medical expenses or other financial burdens due to a terminal illness or other qualifying conditions. The rider essentially provides the policyholder with access to some portion of their death benefit, allowing them to use those funds for necessary expenses during their lifetime, rather than waiting until a claim is made after death.

This flexibility makes the living benefits rider a useful tool for providing financial support when it is most needed, catering to the insured’s immediate needs without requiring them to exhaust their savings or incur debt. Such a provision can greatly enhance the overall value of the life insurance policy by adding utility beyond its traditional purpose.