Why Should I Buy Life Insurance With Living Benefits?

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Understanding Living Benefits in Life Insurance

What are Living Benefits? Living benefits in life insurance are additional features or riders that can be attached to a basic life insurance policy. These benefits offer extra protection and advantages, sometimes for an additional cost. They are designed to meet specific needs that standard insurance policies do not cover.

Types of Living Benefits

  1. Critical Illness Rider: Provides a lump sum if you are diagnosed with a critical illness listed in the policy.
  2. Terminal Illness Rider: Offers early access to death benefits if diagnosed with a terminal illness.
  3. Chronic Illness Rider: Allows you to access benefits if you become chronically ill and meet certain conditions.
  4. Return of Premium Rider: Refunds premiums paid if you outlive the term of the policy.
  5. Disability Waiver of Premium: Waives premium payments if you become disabled and unable to work.

Advantages of Living Benefits

For Term Policies:

  • Financial Support During Illness: Offers financial relief if you suffer from a critical, chronic, or terminal illness.
  • Return of Investment: Return of premium riders ensure you get back what you paid if you outlive the policy.

For Permanent Policies:

  • Wealth Building: Permanent policies with living benefits often include a cash value component that grows tax-advantaged.
  • Flexible Usage: You can use the cash value for various purposes, including funding retirement, while you are still alive.
  • Retirement Funding: Helps in building a financial cushion for retirement.

Comparing Benefits

Benefit TypeTerm Life InsurancePermanent Life Insurance
Critical IllnessLump sum benefitVaries
Terminal IllnessEarly death benefitEarly death benefit
Chronic IllnessAccess to fundsAccess to funds
Return of PremiumPremium refundNot applicable
Disability WaiverPremium waiverPremium waiver
Wealth BuildingNot applicableTax-advantaged cash value


Life insurance with living benefits provides not just a death benefit but also serves as a financial tool during your lifetime. These riders address specific scenarios like illness, disability, or the need for retirement funds, offering you flexibility and peace of mind. Understanding these benefits helps you tailor your life insurance to your individual needs, making it a vital component of your financial plan.

Contact us today for a free quote.

Request A Quote

Get help or a quote from a licensed financial professional. This service is free of charge.

Contact Us

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Shawn Plummer is a Chartered Retirement Planning Counselor, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

Scroll to Top