Which of the following best describes "living benefits" in a life insurance policy?

"Living benefits" in a life insurance policy refer to benefits that can be accessed while the insured is still alive, under specific conditions such as terminal illness, chronic illness, or critical illness. This feature allows policyholders to use a portion of their death benefit to cover medical expenses, long-term care, or other necessary costs that may arise during their lifetime, thus providing financial assistance when it is most needed.

The essence of living benefits is that they enhance the usability of the life insurance policy beyond just providing a death benefit to beneficiaries after the policyholder's death. This feature reflects the evolving needs of policyholders and recognizes that financial support can significantly assist individuals facing life-altering health challenges while they are still alive.

In contrast, benefits that are paid only after death do not fall under the category of living benefits, nor do features that cancel the policy or those that are exclusive to accidental deaths. Understanding living benefits highlights the flexibility and potential advantages of life insurance policies in current financial planning.