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Living Benefits
(redirected from Accelerated Benefit)

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Living benefits
Life insurance benefits from which the insured can draw cash while still living, usually in the case of some high-cost illness.

Living Benefits
In life insurance, all or a portion of the death benefit that the policyholder may receive prior to death. The policyholder usually elects to receive living benefits during a terminal or catastrophic illness, especially one where health insurance does not cover all the bills. They are also called accelerated benefits. See also: Viatical settlement.


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The Chronic Illness Accelerated Benefit allows policyholders to take advantage of the death benefit of a permanent life insurance policy, if the insured is unable to perform two of the six activities of daily living or has suffered from a severe cognitive impairment for at least 90 consecutive days within the previous 12 months.
The policy includes an overloan protection rider and can be customized through the use of select riders (which may result in additional charges): accelerated benefits rider for critical illness or nursing home care, a waiver of monthly deduction, change of insured and an estate tax repeal rider.
These are the accelerated benefits mode and the additional benefits modes and they differ in the manner in which the money is disbursed to the insurer.
 
 
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