What Is An Accelerated Death Benefit On a Life Insurance Policy?

An accelerated death benefit for life insurance is a rider on a life insurance policy that adds coverage to pay out an accelerated benefit while you are alive if you meet the requirements. There's usually no charge for this additional coverage.

The life insurance rider for accelerated benefits states that if you became terminally ill, you can get access to a portion of your life insurance proceeds prior to your death to help pay for certain things such as your medical bills.

The percentage of the face amount of life insurance on your policy that is allowed and the number of months the carrier will allow for the diagnosis of being terminally ill will vary by insurance company.

Generally the accelerated benefit is up to 25% of the face amount of your life insurance and either 6 or 12 months of remaining life expectancy.

Learn more about accelerated death benefit for life insurance.