Can Life Insurance With Living Benefits Help You?

Can Life Insurance With Living Benefits Help You?

May 10, 2022

Many of us think about securing life insurance to protect our loved ones in the event that we pass away unexpectedly. However, some life insurance policies offer “living benefits” that you can tap into when you want to or under certain circumstances. Here we’ll discuss what these benefits are and whether or not they might be a good fit for you: 

What Are Living Benefits?

Also called a hybrid policy, life insurance with living benefits provides a traditional death benefit, but the policy also allows for withdrawals while you are still alive, if certain conditions are met. Living benefits can often be tailored to your needs. A few examples are:

  • Living benefit: Allows you to access funds from your policy if you receive a terminal diagnosis from a physician. You can generally withdraw a portion of your death benefit, which is then deducted from the overall value of the policy.
  • Accelerated death benefit: Allows you to access funds to pay for ongoing medical expenses or other needs. 
  • Quality of life insurance: Provides access to your death benefit to pay for ongoing care required by a chronic illness. 
  • Hybrid long-term care insurance: A combination of life insurance or an annuity with long-term care insurance. Provides a death benefit and also helps cover the cost of a nursing home or other long-term care that you may need. 

How Can Living Benefits Help You?

Rather than spending down your current assets to pay for medical expenses, tapping into a life insurance policy with living benefits can help you make ends meet without losing your entire life’s savings. This can be especially effective for older individuals who might not need the life insurance death benefit and don’t want their money locked up in an expensive policy that only pays out at death. 

Life insurance is meant to replace income and provide for loved ones after you’re gone. But, if you have no debt obligations and your spouse and/or children are fully provided for, it makes sense to have a living benefit clause. Why pay for years into an insurance policy that doesn’t help you when you need it most? A hybrid policy can help avoid the catch-22 of many traditional life insurance policies.

Securing Your Life Insurance Coverage

Keep in mind, living benefits have restrictions and not everyone will qualify. This is where Stratos Wealth Partners comes in—we will help you evaluate your insurance needs and identify which policies are the right fit for your situation.

With over 20 years of experience, we will assess your overall coverage needs, including whether you should consider policies with living benefits. We will also help you determine whether a living benefit you’re seeking through life insurance may be better secured through another option like disability insurance or a retirement account. To learn more, schedule a complimentary introductory call by reaching out to us at 330-576-3912 or We look forward to speaking with you soon!

About Liam

Liam Guiney is partner, financial advisor, and client portfolio manager at Stratos Wealth Partners, an independent investment advisory firm providing personalized financial plans to help clients pursue their goals. With over 20 years of experience, Liam is dedicated to walking his clients through their financial opportunities and challenges, simplifying the complex so they can focus on what’s most important to them. Liam is known for building long-lasting relationships and focusing on individual needs to develop strategies that will help his clients prepare for their ideal retirements. 

Liam graduated from the University of North Carolina Greensboro with a bachelor’s degree and earned a Master of Science at Wake Forest University. He is also a CERTIFIED FINANCIAL PLANNER™ professional. When he’s not working, Liam spends his free time with his wife, Alice, and their son, Nicholas. You can often find him exercising, golfing, or supporting his favorite community organizations through fundraising and volunteering, such as Catholic Charities, the Make-A-Wish Foundation, and cancer research organizations. To learn more about Liam, connect with him on LinkedIn.

This material was prepared for Liam Guiney’s use. Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual.

Riders are additional guarantee options that are available to an annuity or life insurance contract holder. While some riders are part of an existing contract, many others may carry additional fees, charges and restrictions, and the policy holder should review their contract carefully before purchasing. Guarantees are based on the claims paying ability of the issuing insurance company.