Term Life Insurance with Living Benefits – Use Your Coverage While You’re Still Alive
Term life insurance isn’t just about a check to your family after you’re gone anymore.
With term life insurance that includes living benefits, you may be able to:
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Get instant-decision term life coverage with no medical exam in many cases
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Access a portion of your death benefit while you’re still alive if you qualify under a chronic illness or terminal illness provision
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Keep the remaining death benefit in place for your family
Through InstaBrain Term with Living Benefits, you can apply online, receive a real-time decision, and e-sign your policy—often in about ten minutes.
Disclaimer: This page is for general educational purposes only and is not legal, tax, or financial advice. Coverage, eligibility, and benefits depend on underwriting, policy terms, and state availability. Living benefits are not available in all states and are not a substitute for long-term care insurance.
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What Is Term Life Insurance with Living Benefits?
Term life with living benefits is still term life insurance at its core—temporary coverage for a set number of years with a level death benefit.
The difference is that it also includes “living benefits” riders that may allow you to accelerate part of the death benefit while you’re alive if you meet certain criteria. For InstaBrain Term with Living Benefits, those include:
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A Chronic Illness Rider
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A Terminal Illness Rider
You still have a tax-advantaged death benefit (subject to tax law), but you may also have a way to access funds during a serious health event—without needing a separate stand-alone long-term care or critical illness policy.
How the Chronic Illness Living Benefit Works
The Chronic Illness Rider on InstaBrain Term is designed for situations like:
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Permanent severe cognitive impairment, such as advanced dementia
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Permanent inability to perform at least two Activities of Daily Living (ADLs) (for example bathing, dressing, eating) as defined in the policy
When you qualify under the rider and a claim is approved:
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You can accelerate up to 50% of the policy’s face amount, paid over 36 monthly payments, subject to a minimum benefit amount.
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Payments are generally indemnity-style—money paid directly to you to use for any purpose, such as home care, caregiving support, or other bills.
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There is no waiting/elimination period like the 90-day waiting period many traditional long-term care policies require.
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Policy premiums are waived for the rest of the policy once a qualifying chronic or terminal living benefit is accelerated.
You can also choose an alternative lump-sum option where the carrier discounts the stream of payments at an interest rate to provide a single upfront payment.
If you die while receiving chronic illness payments, any remaining scheduled payments plus remaining non-accelerated death benefit are generally paid out in a lump sum to your beneficiaries.
Key point: Using the chronic illness benefit reduces the remaining death benefit, but you keep the rest of the policy in force for your beneficiaries.
How the Terminal Illness Living Benefit Works
The Terminal Illness Rider is designed for situations where a physician certifies a life expectancy of 12 months or less, as defined in the policy.
If you qualify and elect the benefit:
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You can accelerate up to 90% of the face amount, within minimum and maximum dollar limits (for example, at least a few thousand dollars and up to a quarter-million dollars).
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The benefit is paid in a single lump sum.
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The accelerated amount is treated as a lien with interest against the policy’s death benefit.
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Your beneficiaries receive whatever death benefit remains after the lien and any outstanding policy charges.
How InstaBrain Term with Living Benefits Compares to Other Options
According to industry data, a large percentage of people over 65 will need some form of long-term care, and those services can be very expensive over time.
When people ask:
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“Is long-term care insurance a waste of money?”
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“Can life insurance living benefits help pay for long-term care?”
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“Should I get term life with chronic illness rider instead of long-term care?”
They’re really trying to understand trade-offs:
Term with Living Benefits (InstaBrain)
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Term life protection plus the potential to use part of the death benefit while alive
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Chronic illness benefit with no typical 90-day waiting period
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Benefits paid as an indemnity (you choose how funds are used)
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Policy continues with remaining death benefit after acceleration
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Premiums are designed to be fully guaranteed during the level term period
Traditional stand-alone long-term care
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Usually designed specifically for extended care expenses
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Often has elimination periods, benefit periods, and strict reimbursement rules
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Premiums may not be guaranteed and can increase over time
Living benefits on term are not a perfect substitute for long-term care insurance, but they can be a practical way for many families to:
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Get meaningful term coverage for income and mortgage protection
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Add a potential pool of funds for chronic or terminal illness events
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Avoid buying a separate LTC policy when budgets are tight
Coverage Amounts, Issue Ages, and Eligibility
InstaBrain Term with Living Benefits is positioned as a flexible instant-decision term product:
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Issue ages: 18–60 (current age)
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Face amounts: minimum $50,000, maximum generally up to $1,000,000 depending on age, risk class, and term length
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Term periods: 10, 15, 20, and 30 years, plus a 5-year annual renewable term (ART) period after the level term ends
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Risk classes: Non-tobacco and tobacco classes, including Preferred Plus and Preferred where eligible
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Payment modes: Monthly, quarterly, semi-annual, annual via credit card or EFT
Underwriting:
Applications are processed through InstaBrain’s instant-decision digital platform: no medical exam in most cases, fast use of data sources, and policy delivery typically within about 24 hours for straightforward approvals.
Certain serious health conditions, build outside guidelines, or risk factors may not be eligible; others are underwritten case-by-case.
Built-In and Optional Riders
Built-in Living Benefits (no additional premium):
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Chronic Illness Rider (up to 50% of face amount, paid over 36 months)
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Terminal Illness Rider (up to 90% of face amount, subject to a maximum and minimum)
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Policy premiums waived for life once either living benefit is accelerated
Optional Riders (where available):
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Accidental Death Benefit Rider – additional benefit for covered accidental death; available issue ages roughly 20–65, up to the lesser of $250,000 or the base policy amount, with a reduction at older ages and two built-in enhancements: Travel Accident Benefit and Auto Safety Benefit.
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Dependent Child Rider – term coverage on eligible children, usually from 15 days old up to their early 20s, with premiums charged per $1,000 of coverage.
Availability for these riders varies by state.
Who Should Consider Term Life with Living Benefits?
This type of coverage is often a fit when people search:
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“Affordable term life that can help with long-term care costs”
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“Term life with chronic illness rider for mortgage protection”
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“Can I use life insurance to help pay for my parents’ care?”
It may be a good fit if:
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You want income and mortgage protection but also worry about the cost of needing extended care
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You’re in your 30s, 40s, or 50s and want coverage that could help you or your parents (by freeing up cash for their care)
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You’re skeptical about traditional long-term care premiums but still want some protection against chronic illness costs
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You like the idea of no-exam, instant-decision underwriting and digital policy delivery