Which method allows an individual to retain some portion of the death benefit while being alive under specific conditions?

The option indicating "Living benefits" is the correct choice because living benefits are specifically designed to allow policyholders to access a portion of their death benefit while they are still alive, under certain conditions. This typically applies to life insurance policies that include accelerated death benefits, enabling the insured to receive funds in cases of terminal illness, chronic illness, or other specified conditions that may affect their life expectancy.

By utilizing living benefits, individuals can help cover medical expenses or other financial obligations while they are still alive, rather than having their beneficiaries receive the full death benefit only after they pass away. This feature provides financial flexibility and support in critical situations.

The other options refer to different functionalities or benefits associated with life insurance policies. Loans from the policy allow access to cash value but do not directly involve the death benefit in the same immediate way. Policy dividends are a distribution of surplus profits from participating policies, providing policyholders with additional cash but not linked to accessing the death benefit. Cash surrender value is the amount available to the policyholder if they choose to cancel their policy, and while it does allow access to funds, it doesn't involve retaining any portion of the death benefit itself while alive.