Living benefits Insurance is unique in that, unlike life insurance, the value of the policy is paid to the insured without the individual having to suffer death. A living benefits insurance policy will pay out the insured for a number of different reasons. These include dread disease, hospitalisation, long term home care and a number of other possible scenarios. Unless the insured suffers long term disease as mentioned prior, the policy will function as a normal life insurance policy and pay the benefit to the beneficiaries as listed. It is advisable to read your policy carefully to ensure that your policy or the remainder of the benefit on your policy is payable to your beneficiaries as this may not always be guaranteed.