Which of the following best describes living benefits in a whole life insurance policy?

Living benefits in a whole life insurance policy refer to features that allow the policyholder to access certain benefits while they are still alive. This can include provisions such as accelerated death benefits, which enable the insured to receive a portion of the death benefit if they are diagnosed with a terminal illness, or access to cash value accumulation that can be utilized for various needs.

This aspect of whole life insurance demonstrates its flexibility and utility beyond simply being a death benefit policy. It allows policyholders to take advantage of their policy's value or features during their lifetime, addressing financial needs that may arise due to unexpected circumstances, such as a critical illness or the need for long-term care.

The other options do not accurately capture the essence of living benefits. For instance, benefits solely payable upon death would not fall under living benefits, and while there may be provisions concerning the reduction of death benefits or policy loans in certain circumstances, these scenarios do not adequately define what living benefits are in the context of a whole life insurance policy.