Living Benefits Life Insurance

Life Insurance That Pays
While You're Still Living.

Most people think life insurance only pays when you die. Living benefits change that — giving you access to your own death benefit if you face a terminal, critical, or chronic illness diagnosis.

1 in 4
Workers will experience a disability before retirement
Source: SSA
$42,000
Average out-of-pocket cost for a critical illness hospitalization
Source: Kaiser
60%
Of personal bankruptcies involve a medical component
Source: NEJM
90 Days
Typical elimination period before benefits begin — plan ahead
Source: Industry avg.
The Three Riders

Three Types of Living Benefits

Not all living benefit riders are the same. Here's what each one covers and when it pays out.

Included

Terminal Illness

Triggers when: Life expectancy ≤ 24 months
Pays: Up to $250,000 of death benefit

Access up to $250,000 of your death benefit early to cover end-of-life expenses, pay off the mortgage, or provide for your family while you're still here.

Included

Critical Illness

Triggers when: Heart attack, stroke, cancer, organ failure & more
Pays: Lump sum from your death benefit

A cash payment triggered by a diagnosis — not a doctor's bill. Use it for treatment, income replacement, travel for care, or anything your family needs most.

Included

Chronic Illness

Triggers when: Unable to perform 2+ Activities of Daily Living
Pays: Monthly benefit or lump sum

If a permanent disability prevents daily self-care, this rider bridges the gap between your savings and your long-term care costs. Available through age 70.

How It Works

Your Policy Works In Both Directions.

A standard life insurance policy has one job: pay your beneficiaries when you die. A policy with living benefits has two jobs — protect your family after you're gone, and protect you while you're fighting to stay.

01

You get diagnosed with a qualifying condition

02

You submit a living benefit claim with medical documentation

03

The carrier reviews and approves the acceleration request

04

You receive a lump sum or structured payout from your own death benefit

"

Most people don't realize their life insurance can help them while they're still alive. If you're diagnosed with cancer and need to stop working for 6 months, living benefits mean you don't have to drain your savings account.

Important to know:
Base ADB Rider covers terminal, chronic & critical illness — included at no extra cost
Optional Critical Illness Benefit Rider available for enhanced CI coverage (additional premium)
Return of Premium (Endowment Rider) available on 20 & 30-Year terms only
Accelerating benefits reduces the death benefit paid to your heirs
Chronic & Critical Illness benefits available through issue age 70
Tax treatment varies — consult a tax advisor
Critical Illness

Qualifying Conditions

A critical illness benefit pays out upon diagnosis of any of the following qualifying events. You don't have to wait for a hospital bill — the money is yours to use however your family needs it.

Heart Attack
Stroke
Invasive Cancer
Kidney Failure
Major Organ Transplant
Paralysis
Coronary Artery Bypass Surgery
ALS (Lou Gehrig's Disease)
End-Stage Renal Disease
Blindness (permanent)
+ Other qualifying conditions per state-specific policy language
Policy Details

Coverage At a Glance

Tower Hill offers living benefits through A++ (Superior)-rated term life coverage — flexible amounts, flexible terms, with optional return of premium.

Coverage Amounts$25,000 – $10,000,000
Available Terms10, 15, 20 & 30-Year
Base ADB RiderTerminal, Chronic & Critical — included free
Enhanced CI RiderOptional add-on (additional premium)
Return of Premium20 & 30-Year terms only
ConvertibleYes — to permanent coverage
Medical ExamUsually not required
Carrier RatingA+ or A++ (Superior) — AM Best verified

Common Questions

What are living benefits on a life insurance policy?

Living benefits (also called accelerated death benefits) allow you to access a portion of your death benefit while you are still alive if you are diagnosed with a qualifying terminal, chronic, or critical illness. Instead of waiting for a claim after death, you can use the funds for medical bills, living expenses, or anything else you need.

Are living benefits included automatically or do I have to add them?

It depends on the carrier and policy. Many modern term life policies include a terminal illness accelerated death benefit at no additional cost. Critical illness and chronic illness riders typically require adding a rider, sometimes at a small additional premium. Tower Hill reviews this with every applicant so you know exactly what you have.

What conditions qualify for living benefits in Texas?

Qualifying conditions vary by policy but commonly include: terminal illness (life expectancy of 12–24 months), heart attack, stroke, cancer diagnosis, organ failure, ALS, and permanent cognitive impairment. Chronic illness riders may also cover inability to perform 2 or more Activities of Daily Living (ADLs).

Does using living benefits reduce my death benefit?

Yes. Any amount you accelerate from your death benefit while living will reduce the amount paid to your beneficiaries upon your death. If you accelerate $50,000 from a $250,000 policy, your beneficiaries would receive $200,000. This is why it is important to understand the rider terms before you apply.

Can I get life insurance with living benefits in Texas without a medical exam?

Yes. Tower Hill offers no-exam term life policies that include accelerated death benefit riders. Most applicants receive a coverage decision in minutes through our online application, with no blood draw or in-person exam required.

Get Covered

Protection For Today. Security For Tomorrow.

Get a quote that includes living benefit riders. Most Texas applicants qualify without a medical exam — your rate is ready in under 60 seconds.

Made with AI in Macaly