Best Life Insurance With Living Benefits

Mutual of Omaha offers affordable life insurance with living benefits

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Life insurance with living benefits can provide you and your family with essential resources should you become terminally ill or die. Some life insurance policies can even provide you with benefits while you’re still alive. These living benefits can be accessed if you face a qualifying illness or need long-term care. They’re available with term, universal, and whole life policies, and the benefits and payout vary across companies.

The best life insurance companies with living benefits are affordable, offer a wide variety of options, and come with high customer satisfaction ratings. These companies also have a history of financial stability and an easy qualification process. Read on to see our list of the best life insurance companies that provide living benefits.

Best Life Insurance With Living Benefits of 2021

Best Overall : Mutual of Omaha


Mutual of Omaha

Mutual of Omaha

  • AM Best Rating: A+
  • Plans: 5
  • Issue Ages: Up to 80
Why We Chose It

Mutual of Omaha offers affordable term life and permanent life insurance options, and many policies include an accelerated death benefit at no additional cost. There are multiple options for add-ons, and the company is also highly rated for customer satisfaction and financial strength. 

Pros & Cons
Pros
  • Affordable policies

  • Multiple riders provide living benefits

Cons
  • Fewer options when purchasing online

  • Getting coverage can take around one month

Overview

Mutual of Omaha is best overall because it offers an accelerated death benefit that pays out up to 92% of your benefit amount should you become terminally ill and have less than 24 months to live. That’s a higher payout and longer period than many other companies, and this rider also comes with many Mutual of Omaha policies at no additional cost. The company also offers chronic illness and critical illness riders, which are included in some policies.

Founded in 1901, Mutual of Omaha has an A+ financial strength rating with both AM Best and S&P Global. The company notes that it pays out 85% of whole life insurance claims within 24 hours. The provider ranked fifth for customer satisfaction in J.D. Power’s 2020 Life Insurance Study, well above the industry average, and also has favorable reviews on ConsumerAffairs. 

Mutual of Omaha writes policies in all 50 states, though product offerings may vary depending on where you live, and the policies are known to be affordable. For example, quotes for a 20-year, $250,000 policy include:

  • $25 per month for a 35-year-old female nonsmoker
  • $86 per month for a 50-year-old male nonsmoker

You can get a quote and purchase coverage online or over the phone. 

Read our full Mutual of Omaha review for more details.

Best for Whole Life Policies : MassMutual


MassMutual

MassMutual

  • AM Best Rating: A++
  • Plans: 1
  • Issue Ages: Up to 65
Why We Chose It

MassMutual offers a whole life insurance and long-term care insurance combination package that provides excellent flexibility with regards to how you can use the benefits, making it our choice for best for whole life policies.

Pros & Cons
Pros
  • Long-term care riders on whole life policies provide flexible living benefits

  • Eligible for dividend payments

  • Mobile app and online account management

Cons
  • Medical underwriting required

  • No online quotes for whole life policies

  • Limited details about terms online

Overview

MassMutual’s Care Choice One and Care Choice Select plans are whole life insurance policies with long-term care riders. There are three ways you can use these benefits:

  • Receive payouts to cover long-term care while you’re living
  • Cancel the policy and receive the surrender value while you’re living
  • Receive a tax-free death benefit for your dependents after your passing

If you don’t need that much flexibility but still want funds in case of a terminal illness, you can also add an accelerated death benefit rider to a regular whole life insurance policy with MassMutual. That will provide you with an advance if you’re diagnosed with a terminal illness and are expected to die within 12 months. Either way, you’ll get a policy that accumulates cash value and may be eligible for dividends, which MassMutual has paid every year since 1869. 

Founded in 1851, MassMutual has an A++ financial strength rating with AM Best and has above-average customer satisfaction ratings in J.D. Power’s 2020 Life Insurance Study. While you can’t get a quote for a whole life insurance policy online, quotes for term policies are affordable. For example, for a 20-year, $250,000 policy, a 35-year-old female nonsmoker would pay $15 per month and a 50-year-old male nonsmoker would pay $51 per month. 

MassMutual writes policies nationwide, but product offerings may vary by state. 

Read our MassMutual life insurance review for more details.

Best for Term Policies : Haven Life


Haven Life

 Haven Life

  • AM Best Rating: A++
  • Plans: 1
  • Issue Ages: Up to 65
Why We Chose It

Haven Life offers affordable term policies with living benefits riders and a suite of free tools designed to help your health and finances, which is why it is our best for term policies winner.

Pros & Cons
Pros
  • Haven Life Plus features are included at no extra cost (not available in all states)

  • Get a quick online quote and purchase coverage online

  • Accelerated death benefit and disability waiver of premium rider

Cons
  • Not available in every state

  • No whole life insurance policies

  • Not ideal for seniors or people with health issues

Overview

Haven Life offers an accelerated death benefit rider with its term policies that provides 75% of the face value (up to $250,000) if the insured becomes terminally ill and is expected to pass away within 12 months. This is paid in a lump sum. In addition to this rider, Haven has reimagined living benefits with the Haven Life Plus rider, a suite of tools that provide a free online will, a subscription to a fitness app, discounts at MinuteClinic, and more, although it is not available in all states.

Haven is a new player in the insurance industry, but it has expanded to offer term policies in 42 states since it was founded in 2014. As of July 1, 2021, Haven Life's policies are being underwritten by C.M. Life, a subsidiary of MassMutual which has an A++ financial strength rating with AM Best. Quotes for a 20-year, $500,000 policy are affordable, especially for younger folks. Haven Life estimates that a 35-year-old female nonsmoker would pay around $17.50 per month, and a 45-year-old male nonsmoker would pay around $42.45 per month. 

One of the best parts about using Haven is that it’s quick and easy to get coverage online without a medical exam. It’s also possible to talk to an agent or use their online chat for support.

Best for Impairment : New York Life


New York Life

 New York Life

  • AM Best Rating: A++
  • Plans: 10
  • Issue Ages: 75 to 90
Why We Chose It

Whether you face temporary or permanent impairment, you can access a portion of your death benefit when you choose New York Life’s living benefits option, the best coverage for impairment in our review.

Pros & Cons
Pros
  • Accelerated death benefits that cover chronic illness

  • Convertible term policies available up to age 75

Cons
  • No online quotes

Overview

While many life insurance companies offer riders to assist with terminal illnesses, fewer provide options for temporary impairment. But New York Life has a chronic care rider (note that the name may vary by state, and it isn’t available everywhere) that allows you to access up to 50% of the death benefit if you are diagnosed with a qualifying chronic illness. You can use the payout however you want, and the remaining benefit will be available to your dependents when you die. 

Founded in 1845, New York Life has an A++ rating with AM Best, above-average customer satisfaction ratings in J.D. Power’s 2020 Life Insurance Study, and fewer complaints than would be expected for its size. You can’t get a quote online, and you’ll need to talk to an agent to purchase coverage, but plans are rumored to be affordable. There are agents available to help you secure coverage in every state. 

Read our New York Life review for more details.

Most Affordable Option : Nationwide


Nationwide

 Nationwide

  • AM Best Rating: A+
  • Plans: 4
  • Issue Ages: Up to 80
Why We Chose It

Nationwide offers very affordable term policies with an accelerated death benefit rider as well as a long-term care rider on its universal life insurance policies.

Pros & Cons
Pros
  • Some of the most affordable term policy quotes in the industry

  • Online quote and application for term policies

  • Ranked third in J.D. Power’s 2020 Life Insurance Study

Cons
  • No online quotes for permanent life insurance policies

  • No chronic illness or long-term care rider on term policies

Overview

Nationwide offers a couple of options for living benefits and is the most affordable option in our review. You can get a universal policy with a long-term care rider, which provides you with a monthly benefit should you need long-term care, or you can get an accelerated death benefit on Nationwide’s term, whole, universal, and variable life insurance products. This provides a portion of your death benefit as a lump sum if you are diagnosed with a terminal illness and expected to pass away within 12 months or less. 

Nationwide was founded in 1926 and has an A+ financial strength rating with AM Best. The company is ranked third in J.D. Power’s 2020 Life Insurance Study. Online quotes for a 20-year, $250,000 policy were very affordable: Nationwide estimates that a 35-year-old female nonsmoker would pay as little as $15 per month, and a 50-year-old male nonsmoker would pay $43 per month. 

It’s easy to get a quote and apply for a term policy online, but you’ll need to call an agent to get a quote for any of Nationwide’s permanent life insurance policies. 

Nationwide writes policies in all states, but the availability of riders may vary. 

Read our Nationwide review for more details.

Best for Qualifying Easily : Fidelity


Fidelity

 Fidelity

  • AM Best Rating: A-
  • Plans: 3
  • Issue Ages: Up to 85
Why We Chose It

Fidelity offers term and permanent policies with no medical underwriting, and you can get approved and buy coverage online.

Pros & Cons
Pros
  • Terminal illness rider available at no additional cost with select policies

  • No medical exam required

Cons
  • Lower maximum death benefit on permanent policies

  • Higher premiums than some other providers

Overview

None of Fidelity’s policies requires a medical exam and many plans offer same-day approvals, making it the best for qualifying easily of all the companies we reviewed. Fidelity’s Final Expense, Guaranteed Issue, and Express Term policies all include a terminal illness rider at no additional expense; you’ll just need to add the rider when you purchase your policy. The terms of the rider vary, but it allows you to access a portion of your death benefit if you are diagnosed with a terminal illness and expected to pass away within 12 to 24 months. 

Fidelity Life has been providing life insurance products since 1896 and has an A- financial strength rating with AM Best and was recognized for excellent customer service by Newsweek. The company is licensed in all states except Wyoming and New York, and you’ll be able to get a quote and buy a policy either online or by phone. Rates are also affordable, with Fidelity estimating that a 50-year-old male in great health would pay $60 per month for a 20-year, $250,000 term policy or $43 per month for a $10,000 final expense policy. 

Read our Fidelity Life Insurance review for more details.

Best for Seniors : Northwestern Mutual


Northwestern Mutual

Northwestern Mutual

  • AM Best Rating: A++
  • Plans: 17
  • Issue Ages: Up to 80
Why We Chose It

Northwestern Mutual offers a range of options for seniors with an accelerated care benefit available on its permanent policies. The provider is also expected to pay $6.2 billion in dividends in 2021—just part of why we chose it as best for seniors.

Pros & Cons
Pros
  • Offers all types of life insurance

  • Accelerated care benefit available on permanent policies

Cons
  • No online quotes

  • No guaranteed issue or final expense policies

Overview

Northwestern Mutual is ideal for seniors seeking a whole life insurance policy with an accessible cash value plus an accelerated care benefit. Convertible term policies are also available for seniors. 

Permanent policyholders can access the cash value of their policies at any time, and Northwestern Mutual also offers an accelerated care benefit rider. While the details provided about the rider are vague, the benefit is designed to help pay for potential long-term care costs. Up to 90% of the face value of the policy can be accessed in advance if you qualify. There’s also an early pay benefit that you can add, which will allow you to access up to 50% of your death benefit if you are diagnosed with a terminal illness. These options aren’t available in all states, but Northwestern Mutual does offer policies nationwide. 

The company was ranked fourth in J.D. Power’s 2020 Life Insurance Study and has an A++ financial strength rating with AM Best. Northwestern Mutual has been around since 1857 and has an excellent history of paying dividends to permanent policyholders. 

Read our Northwestern Mutual review for more details.

Most Comprehensive Coverage : Ameritas


Ameritas

Courtesy of Ameritas

  • AM Best Rating: A
  • Plans: 5
  • Issue Ages: Up to 70
Why We Chose It

Most Ameritas policies include the Care4Life rider, which provides living benefits for critical illness, chronic illness, and terminal illness.

Pros & Cons
Pros
  • Living benefits with 18 qualifying triggers included in most policies

  • Affordable term policies, whole life, and universal life policies available

Cons
  • No online quotes for permanent policies

  • Limited customer service reviews available

Overview

Ameritas is our choice for the most comprehensive living benefits coverage in our review, and its riders are available at no cost to most policyholders. Ameritas writes policies in all states except New York. 

The Ameritas Care4Life rider gives you living benefits in three circumstances:

  • Up to 25% of your benefit (up to $125,000) for critical illness, such as life-threatening cancer or a major heart attack
  • Up to 50% of your benefit (up to $1 million) for chronic illness, or when the insured is unable to perform two out of six activities of daily living
  • Up to 75% of your benefit (up to $1 million) for terminal illness, which includes any diagnosis expected to end in death within 12 months

Founded in 1887, Ameritas has an A financial strength rating with AM Best. The provider offers some of the most affordable term policies. For a 20-year, $250,000 term policy, a 35-year-old female nonsmoker would pay between $14 and $24, while a 50-year-old male nonsmoker would pay between $44 and $82, depending on health status. You can get a quote online for term policies but not for permanent ones. 

If you want to purchase coverage, you’ll need to contact an agent. It’s possible to get coverage without a medical exam, and convertible term policies are available that also won’t require an exam later on, but there are limits to the benefit amount unless you get an exam. Once you’re a policyholder, you can reach customer service by phone or email.

Read our Ameritas review for more details.

Final Verdict

Many life insurance companies offer living benefits, but the right provider for you will depend on factors such as the type of policy you need, the level of coverage you want, your health, and your budget. Mutual of Omaha stood out to us because of the variety of policies that include living benefits, the high payout for the accelerated death benefit, and the company’s high financial strength and customer satisfaction ratings. 

We recommend using this list as a starting point and comparing personalized life insurance quotes across providers. 

Compare the Best Life Insurance With Living Benefits

Provider  Coverage Capacity Issue Ages
Mutual of Omaha Best Overall $1,000,000 Up to 80
MassMutual Best for Whole Life Policies $10,000,000 Up to 90
Haven Life Best for Term Policies $500,000 Up to 65
New York Life Best for Impairment $5,000,000 and up Up to 90
Nationwide Most Affordable Option Not stated Up to 80
Fidelity Best for Qualifying Easily $1,000,000 Up to 85
Northwestern Mutual Best for Seniors $10,000,000 Up to 80
Ameritas Most Comprehensive Coverage $1,000,000 Up to 70

Frequently Asked Questions

Can Life Insurance Be Paid Out Before Death?

It’s possible to access some or all of your life insurance death benefit while you are still alive. There are generally three ways to get money from your life insurance policy before you die:

  • Taking out a loan or withdrawal from the cash value of a whole or universal policy
  • Surrendering a whole or universal policy and keeping the cash value minus any fees
  • Taking advantage of an accelerated death benefit rider

If you added an accelerated death benefit rider to your term or permanent policy, you may be able to access a portion of the death benefit if you are diagnosed with a qualifying health condition. 

What Are the Benefits of a Permanent Life Insurance Policy? 

A permanent life insurance policy covers you for life, which makes it up to 10 times more expensive than a comparable term life policy. But with the added premium, you get several key benefits:

  • A cash value that grows with time and can be accessed to cover expenses
  • The possibility to earn dividends
  • A guaranteed, tax-free death benefit paid to your beneficiaries no matter when you die

What Happens If I Live Past My Term Life Insurance? 

If you live past the term for which you purchase a policy, you won’t get any of the death benefit. That’s one reason why term life insurance policies are so much more affordable than permanent life insurance policies, which have a guaranteed payout. You should purchase a term length that meets your family’s needs, whether that’s a 10-year term to cover you until your mortgage is paid or a 20-year term that will cover you until your kids graduate. 

Methodology

We evaluated more than two dozen life insurance providers before choosing the best options with living benefits. We considered the variety of policy options, the affordability of term policies, the ease of qualification and application, financial strength, and customer satisfaction ratings. We also paid attention to when and how much each company paid with a living benefits rider attached to a policy, and whether riders were included at no additional cost. 

All of our top choices offered affordable and comprehensive policies from companies with excellent financial strength, were easy to apply for, and provided a variety of life insurance options.