Life insurance living benefits are features of a life insurance policy that allow the policyholder to access a portion of the death benefit, or cash value on the policy, while they are still alive. These benefits can be used in situations such as terminal illness, chronic illness, or long-term care needs. They provide financial support to cover medical expenses, care costs, or other living expenses during a time of critical need.

Return of premiums (ROP) is a type of life insurance policy that refunds some or all the premiums paid by the policyholder if they outlive the term of the policy. Essentially, if you hold the policy until the end of its term and do not pass away during this period, the insurance company returns the total amount of premiums paid, with or without interest.

Key Features of ROP Life Insurance:

1. Premium Refund: At the end of the policy term, if the insured is still alive, all the premiums paid are refunded.

2. Optional convertion: ROP policies may offer 3 ways of return: 1. Withdrawal of cash surrender value. 2. To use accumulated value to buy a single pay premium policy for a determined period of time with the same face amount. And 3. Extend coverage for a lesser face amount and receiving an income for a determined period of time.

3. Death Benefit: If the insured dies during the term, the beneficiaries receive the death benefit just like with standard term life insurance.

4. Financial Planning Tool: It can be seen as a form of forced savings, providing a safety net if the insured survives the policy term, while still offering life insurance protection.

Accelerated death benefit (ADB) is a feature included in many life insurance policies that allows the policyholder to access a portion of their death benefit while they are still alive under certain conditions. This benefit is typically available if the insured person is diagnosed with a terminal illness or has a medical condition that drastically reduces their life expectancy, usually to less than 12 to 24 months.

Key Features of ADB:

1. Early Access: Policyholders can receive a portion of the death benefit early, which can be used to cover medical expenses, hospice care, or other financial needs.

2. Reduction in Final Benefit: The amount taken as an accelerated death benefit is subtracted from the final death benefit paid to beneficiaries after the policyholder's death.

3. No Restrictions on Use: Funds from an accelerated death benefit can generally be used for any purpose, giving policyholders flexibility in managing their finances during a difficult time.

4. Qualification Criteria: Accessing the accelerated death benefit usually requires certification from a physician that the policyholder has a terminal illness or a qualifying chronic or critical condition.

Borrowing money from a life insurance policy is a process available to policyholders who own a life insurance policy which accumulates cash value over time. Here's how it works:

1. Cash Value Accumulation: Permanent life insurance policies build cash value as you pay premiums over time. This cash value acts as a savings component within the policy that grows tax-deferred.

2. Loan Eligibility: You can borrow against the cash value of your policy.

3. Interest Rates: Loans from life insurance policies typically have lower interest rates compared to other types of loans.

4. No Credit Check: Borrowing against your life insurance does not require a credit check or approval process, making it a quick and easy option for accessing funds.

5. Repayment: While you are not required to repay the loan, any outstanding loan amount and interest will be deducted from the death benefit if the loan is not repaid. This reduces the amount your beneficiaries will receive.

6. Tax Implications: Policy loans are generally not taxable as long as the policy remains in force. However, if the policy lapses or is surrendered with an outstanding loan, the loan amount may be considered taxable income.