What is an accelerated death benefit?

Question

For context, a life policy includes an accelerated death benefit that may allow access to part of the death benefit during a serious illness. I want to understand the tradeoff before relying on it. The part that needs sorting out is that I want to understand the contract before I buy, cancel, replace, or rely on the coverage.

Soradin · Accepted Answer

It is a policy feature that can advance part of the death benefit when specified health conditions are met. For a coverage review, accelerated death benefits may allow an insured person to receive part of the life insurance benefit while living after a qualifying terminal or serious condition. For a coverage review, eligibility, amount, fees, taxes, and effects on public benefits depend on the policy and circumstances. Use the policy contract and the latest illustration as the controlling documents, then have a licensed insurance professional provide a written explanation of the relevant guarantees, exclusions, riders, and surrender restrictions.

What is an accelerated death benefit?

Soradin

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