What is one common benefit of having a living benefits rider?

A living benefits rider provides the policyholder with the option to access a portion of the death benefit while they are still alive, typically in the event of a terminal illness, critical illness, or chronic illness. This feature can be crucial for individuals facing significant medical challenges, as it allows them to obtain necessary funds for treatments or to cover expenses associated with their condition.

This option can alleviate financial burdens during difficult times, enabling policyholders to utilize their life insurance policy as a source of support when they need it most. It empowers individuals to make decisions about their healthcare without the added stress of financial constraints.

In contrast, other potential benefits mentioned do not accurately reflect the function of living benefits riders. For instance, lower premiums or guaranteed increases in death benefits are characteristics of different policy features, while an immediate payout upon signing the policy is not typically an attribute of a living benefits rider, as the funds can only be accessed under specific conditions and not simply at the inception of the policy.