Why might an individual choose a life insurance policy with living benefits?

An individual may choose a life insurance policy with living benefits primarily because it allows them to access funds before death in the event of a qualifying illness. Living benefits, often associated with policies such as whole life or universal life insurance, provide the policyholder with the ability to tap into the cash value or death benefit of the policy while they are still alive, typically if they are diagnosed with a terminal illness or a critical condition.

This feature offers financial assistance during a difficult time, allowing the insured to cover medical expenses, pay for long-term care, or simply alleviate financial stress while they are still living. It addresses the practical needs of an individual who may be concerned about the costs associated with a serious illness, making these policies more appealing beyond the traditional primary function of providing a death benefit to beneficiaries after the insured's passing.

Choosing living benefits aligns with a proactive approach to financial planning, acknowledging that well-being and financial security can intersect before death, stressing the importance of preparing for both anticipated and unforeseen health challenges.