What is the purpose of the living needs rider in life insurance policies?

The living needs rider is specifically designed to assist policyholders who face a diagnosis of terminal illness. When this rider is included in a life insurance policy, it allows the insured individual to access a portion of the death benefit while they are still alive. This provision helps cover medical expenses, outstanding debts, or other financial needs that may arise during a challenging time.

The living needs rider is particularly valuable because it provides financial relief when it is most needed, allowing individuals to focus on their care and comfort rather than financial concerns. This aspect of the rider reflects the growing awareness of the importance of offering supportive financial options at critical moments in a policyholder's life. Other choices may relate to benefits or adjustments to the insurance policy, but they do not capture the essential purpose of helping insured individuals access funds during their lifetime in the event of a terminal diagnosis.