What is meant by "living benefit" in life insurance?

The term "living benefit" in life insurance refers to the ability for the policyholder to access certain benefits during their lifetime under specific circumstances, rather than waiting until after their death. This can include scenarios such as critical illness, terminal illness, or long-term care needs, allowing the insured to use a portion of their policy’s death benefit while they are still alive to cover medical expenses or other related costs.

This feature is designed to provide financial support to the policyholder during challenging health situations, ensuring that they can make use of their insurance coverage when they need it most. It emphasizes the versatility and additional value of life insurance policies by addressing not only the protection of beneficiaries after death but also the immediate financial needs of the insured.