What is a living benefits rider?

Type of insurance. Living benefits riders are available with certain term and permanent life insurance policies, but cash value is only available with permanent life insurance. Waiting period. Some riders may only be invoked after a specific time period has passed. Likewise, cash value must accrue before the policyholder can access it. Age.

What types of riders offer life insurance living benefits?

There are several different types of riders that offer life insurance living benefits. For example, if you are diagnosed with a terminal illness and have less than 24 months to live, an accelerated death benefits rider could provide you with some or all of your death benefit to pay for end-of-life care.

Should I add a living benefits rider to my life insurance policy?

It’s common to opt into a living benefits rider when you first purchase your life insurance policy. Many policies also automatically come with at least one living benefits rider, such as terminal illness. Even so, it may be possible to add on a living benefits rider later.