Traditional life insurance is designed to protect your loved ones after you're gone. But what if your policy could also protect you while you're still alive? That's exactly what living benefits riders offer.
These policy add-ons allow you to access a portion of your death benefit early if you're diagnosed with a qualifying illness—giving you financial flexibility during a health crisis. According to an Investopedia analysis of 45 life insurance companies, Nationwide stands out as the best overall for living benefits, offering three critical riders at no extra cost on most policies .
This guide examines the top companies offering living benefits riders and explains what you need to know to choose the right policy.
What Are Living Benefits Riders?
Living benefits riders, also known as accelerated death benefit riders, are provisions that let you tap into your policy's death benefit while you're still alive . They typically cover three main categories :
| Rider Type | Qualifying Condition |
|---|---|
| Terminal Illness Rider | Life expectancy of 12 months or less |
| Critical Illness Rider | Stroke, heart attack, kidney failure, cancer, or other specific conditions |
| Chronic Illness Rider | Severe cognitive impairment (like Alzheimer's) or inability to perform two of six "activities of daily living" |
These funds can be used for medical expenses, in-home care, or even everyday bills. The amount you withdraw is deducted from your death benefit, so your beneficiaries receive what remains.
Best Overall for Living Benefits: Nationwide
AM Best Rating: A+ (Superior)
Nationwide earned the top spot in Investopedia's 2026 living benefits analysis, praised for its generous benefits and versatile policies . MoneyGeek also recognized Nationwide as best for customer experience among living benefits providers .
What makes Nationwide exceptional:
Three living benefits included at no extra cost on most term and permanent life policies
Critical illness rider covers heart attack, stroke, kidney failure, sudden cardiac arrest, and cancer diagnoses
Chronic illness rider applies to severe cognitive impairment (e.g., Alzheimer's) or the inability to perform two of six activities of daily living (bathing, toileting, eating, dressing)
Terminal illness rider provides early access if you have a life expectancy of less than 12 months
Long-term care rider available—a hard-to-find feature offered by only 9 of 45 companies researched
No-exam underwriting for up to 70% of applicants ages 18-50 with coverage up to $5 million
Ranked #5 of 21 companies in the 2024 J.D. Power customer satisfaction survey
What to watch for:
The terminal illness rider only allows access to 50% of the death benefit—some competitors allow 75% or more
The chronic illness rider is not available if you purchase the long-term care rider
Chronic and critical illness riders are not available on 10-year term policies and are limited to issue ages 18-55 for other term durations
Who it's best for: Buyers who want comprehensive living benefits automatically included at no extra cost, with the option to add a long-term care rider.
Best for Term Life Living Benefits: Columbus Life
AM Best Rating: A+ (Superior)
Columbus Life stands out for offering term life insurance with robust living benefits at some of the most competitive rates—especially for applicants aged 55 and older .
What makes Columbus Life exceptional:
Its Nautical Term policy includes an accelerated death benefit rider covering terminal illness, chronic illness, and specific critical conditions like stroke and life-threatening cancer
Excellent customer complaint record—far fewer complaints than expected for a company of its size
Conversion to permanent insurance at no additional cost, without new health underwriting
What to watch for:
Who it's best for: Those aged 55+ seeking affordable term coverage with generous living benefits and no upper coverage limit.
Best for Whole Life Living Benefits: Assurity
Assurity provides the strongest all-around whole life insurance package with living benefits, according to Investopedia's research .
What makes Assurity exceptional:
Its Whole Life Protect and Whole Life Perform+ policies include terminal, chronic, and critical illness riders at no extra cost
High age limit—coverage available to applicants up to age 85, older than many competitors allow
Pays dividends—Assurity has paid dividends on whole life policies every year for over a century
What to watch for:
Who it's best for: Older applicants (up to 85) who want whole life coverage with living benefits and potential dividend growth.
Best for Customer Satisfaction: Penn Mutual
AM Best Rating: A+ (Superior)
Penn Mutual earns top marks for customer satisfaction, with state regulators receiving far fewer complaints than expected for a company of its size . It also offers generous living benefits on permanent policies, with no-exam coverage available.
What makes Penn Mutual exceptional:
Terminal and chronic illness riders included at no cost on all permanent life policies
Paid dividends for over 175 years with rates that top most competitors'
What to watch for:
Who it's best for: Permanent life buyers who prioritize customer satisfaction and want no-exam coverage with terminal and chronic illness riders.
Best Coverage Options: Pacific Life
AM Best Rating: A+ (Superior)
MoneyGeek rated Pacific Life as having the best coverage options among living benefits providers . It also offers a long-term care rider—one of the rarer features in the industry .
What makes Pacific Life exceptional:
Superior permanent life insurance products with reliable policy illustrations and low internal costs
What to watch for:
Who it's best for: Permanent life buyers who want access to a long-term care rider alongside standard living benefits.
Quick Comparison Table
| Company | Living Benefits Included | Best For | Notable Limitation |
|---|---|---|---|
| Nationwide | Terminal, Critical, Chronic (free) | Overall living benefits, customer service | Terminal rider caps at 50% of death benefit |
| Columbus Life | Terminal, Chronic, Critical (included with term) | Term life with living benefits | Not available in NY; no whole life |
| Assurity | Terminal, Critical, Chronic (free) | Whole life, older applicants | No long-term care rider; not in CA/NY |
| Penn Mutual | Terminal, Chronic (free on permanent) | Customer satisfaction, no-exam coverage | No living benefits on term policies |
| Pacific Life | Accelerated Death Benefit + LTC rider | Coverage options, long-term care access | Higher term rates for seniors |
What to Consider Before Buying
Are living benefits free?
Many top insurers include terminal, critical, and chronic illness riders at no additional cost beyond administrative fees . However, using the benefit reduces your death benefit, and some riders may treat the accelerated amount like a policy loan with interest charges .
Can I add a long-term care rider?
Only a handful of insurers offer this—Nationwide and Pacific Life are notable examples . It's a valuable feature if you're concerned about future long-term care costs.
What's the difference between a chronic illness rider and a long-term care rider?
A chronic illness rider covers severe cognitive impairment or the inability to perform activities of daily living . A long-term care rider is broader, designed to pay for extended nursing home or in-home care services. You typically must choose one or the other, as they can't both be added to the same policy .
When should I add riders?
Most riders must be elected at the time of policy purchase . Adding them later may require new underwriting—potentially including a medical exam.
Final Thoughts
Living benefits riders transform a life insurance policy into a versatile financial tool that can protect you both during and after your lifetime. Nationwide leads the pack for its comprehensive suite of free riders and strong customer satisfaction . Columbus Life offers exceptional term coverage with living benefits, Assurity stands out for whole life, and Penn Mutual excels in customer satisfaction for permanent policies .
The best choice depends on your age, health, budget, and whether you prioritize term or permanent coverage. Compare these top providers to find the policy that gives you the protection—and the peace of mind—you deserve.
