Posted on December 7th, 2024
by Verby Bermudez

3 min read

Life insurance is traditionally seen as a safety net for loved ones after death, but policies with living benefits can help you while you’re still alive. These features, available in many permanent life insurance products, allow you to access a portion of your policy’s death benefit or cash value for immediate needs.

What Are Living Benefits?

Living benefits are provisions that enable policyholders to use their life insurance for more than just final expenses. In fact, 44% of life insurance owners purchase it to help with income or expenses during their lifetime, according to LIMRA. While a policy’s primary purpose is to provide a tax-free death benefit, living benefits offer critical financial support during emergencies.

Many Indexed Universal Life (IUL) policies include living benefits, making them a popular choice for permanent coverage. Here’s how these benefits can work for you:

Accessing Death Benefits While Living

Living benefits are often provided through accelerated benefit riders, allowing you to access part or all of your death benefit if you face:

1. Terminal Illness – A diagnosis of a condition likely to result in death within a set period.
2. Critical Illness – Conditions such as cancer or heart disease that meet the insurer’s criteria.
3. Chronic Illness – Inability to perform daily activities like bathing or eating, as certified by a doctor.
4. Critical Injury – This coverage is not typically included with most life insurance carriers. Fortunately, Vandj Life's carrier National Life Group provides protection against major trauma at no additional cost.
5. Alzheimers – This coverage is also not included or inclusive with most life insurance carriers. Fortunately, Vandj Life through National Life Group offers coverage from this progressive brain disorder that causes memory loss, confusion, and other cognitive decline. It is the most common form of dementia, affecting millions of people worldwide.

These funds can be used for anything, including household expenses, medical care, or even a dream vacation. You can request a full payout or retain part of the benefit for your beneficiaries.

Using Cash Value

An IUL policy’s cash value grows tax-deferred and can be tapped into for routine needs, such as:

✅ Financial emergencies
✅ Reducing premiums
✅ Supplemental income

You can access this cash value through loans or withdrawals:

• Loans: Borrow against your policy’s cash value, typically after a year. Interest applies, so timely repayment is crucial to maintain coverage.
• Withdrawals: Take a portion of the funded cash value without repayment. However, this reduces your death benefit and may increase premiums.

Considerations Before Accessing Benefits

Living benefits are not the same as surrendering your policy. Always consult a financial professional to understand the impact on your policy and potential tax implications.

A Versatile Financial Tool

With both death benefit protection and the ability to grow cash value, IUL policies with living benefits provide a safety net for life’s uncertainties. They’re a smart addition to long-term financial plans, offering peace of mind—whether you’re preparing for the unexpected or planning for the future.

Want to Learn More?

📌 Learn more about complete living benefits: VandjLife.com
📧 Email us: info@vandjlife.com
📞 Need to chat? Call us or text 'BENEFITS' to (832) 885-2067

🕒 Business Hours:

• Monday – Thursday: 8 AM – 5 PM (PST)
• Friday: 8 AM – 12 PM (PST)

*Living Life Defender our all-inclusive and complete with living benefits is an exclusive life insurance product designed for and distributed by Premier Financial Alliance. The owners and financial professionals at Vandj Life are proud affiliates of PFA and are appointed with National Life Group. This permanent life insurance policy offers both protection and the potential for cash value growth. Issued by Life Insurance Company of the Southwest®, a member of National Life Group®, it represents the next evolution in our shared commitment to financial security.