Accelerated death benefit

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Accelerated Death Benefit

A death benefit in some life insurance policies that may be paid before the policyholder's actual death. Generally speaking, one may use the accelerated death benefit only to defray medical expenses should the policyholder be diagnosed with a terminal illness. The idea of the accelerated death benefit originated in the 1980s to help pay for some of the medical expenses of AIDS patients.

Accelerated death benefit.

If your life insurance policy has an accelerated death benefit (ADB), you may qualify to use a portion of the death benefit to pay for certain healthcare expenses, such as the costs of a terminal illness or long-term care, while you're still alive.

Using the ADB, you take cash advances from the policy, reducing the death benefit by up to a fixed percentage. The balance is paid to your beneficiaries on your death.

While an accelerated death benefit can help ease current financial burdens, including this option in your policy increases the cost of coverage. And, if you do take money out, it reduces what your beneficiaries receive.

References in periodicals archive ?
In an effort to assist life insurance members who are seriously, but not terminally ill, Aetna (NYSE:AET) now allows their Accelerated Death Benefit (ADB) to become effective upon diagnosis of a specific medical condition.
3) LifeCare Benefit is an accelerated death benefit rider and may not be available in all states.
Accelerated Death Benefit for Terminal and Chronic Illness - available at no additional cost on both versions, this rider pays the living benefits by accelerating a portion of the death benefit to help pay for expenses from a terminal or chronic illness.
Other available riders include Disability Protection with Waiver of Premium, Guaranteed Insurability Rider, Accelerated Death Benefit Rider, and Transfer of Insured Rider.
The LifeAccess Accelerated Death Benefit Rider, which allows policyholders to use, or 'accelerate,' their policy's death benefit for daily living needs, is the newest of five riders available on The Hartford's VUL policies that provide a range of benefits during chronic or terminal illnesses and disabilities.
A) Critical illness insurance B) Medical insurance C) Disability insurance D) Long-term care insurance E) Accelerated death benefit on a permanent life insurance policy
Nationwide's rider with an indemnity feature can provide the policyholder with an accelerated death benefit to use for long-term care.
Policy Forms #147-10, #147-15, #147-20, #147-30, #147-54, Disability Premium Waiver Rider # R85-201, Level Term Insurance Rider -- Children's Term Insurance # R79-33, Accelerated Death Benefit Rider, form # R06-70).
The Accelerated Death Benefit for Terminal Illness allows early access to the policy's death benefit due to a terminal illness and the Spouse's Paid-Up Insurance Purchase Option allows a spouse to purchase a single premium paid-up whole life policy without showing evidence of insurability upon death of the insured.
The LifeCare Benefit is an accelerated death benefit and may not be available in all states.
Accelerated Death Benefit - pays 92 percent of the death benefit in a lump-sum if life expectancy is 24 months or less.
The policy can be customized further through the use of select riders (available at an additional cost): a choice of disability income or waiver of premium during a disability, accelerated death benefit or return of premium rider (ROP).

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