What are "living benefits" in a life insurance policy?

Living benefits in a life insurance policy refer to features or provisions that allow the insured individual to access a portion of the death benefit while they are still alive, often in the event of a terminal illness, serious medical condition, or other qualifying circumstances. This can provide crucial financial support during challenging times, allowing the insured to cover medical expenses or other costs associated with their condition.

These benefits stand out as they offer a practical solution to immediate financial needs, rather than solely focusing on the financial payout that beneficiaries will receive upon the insured's death. By providing access to funds before death, living benefits can help alleviate some of the financial burdens typically associated with serious health issues.

The other choices, while they may pertain to aspects of insurance, do not accurately define living benefits. The second choice focuses on post-death support for beneficiaries, which is not relevant to living benefits. The third option relates to the growth of cash value over time, which is a separate feature of certain life insurance policies. Lastly, the fourth choice discusses the termination of a policy, which is not a benefit in the context of accessing funds while alive.