Living Benefits - Insurance for Living Benefits South Africa

Most life insurance policies come with living benefits. Living benefits refer to a payout of a life insurance policy even when the policyholder has not died. Dread disease and disability are examples of living benefits. The full amount of the life insurance policy can be paid out in the event the insured life suffers a disability and no longer work or function, or if he or she is diagnosed with a serious illness.

The amount paid out is often the same amount as the life cover, but this may depend on the nature of the peril. For example, a policyholder who loses an arm may not receive as much of a payout as a policyholder who loses his or her ability to walk. Many single insureds opt into a life insurance policy for the living benefits which are paid out to him or her instead of nominated beneficiaries.