The accelerated death benefit is a life insurance policy rider that lets you receive a portion of your life insurance money while you are still living, usually to cover a major cost, such as a terminal illness. The money can be used towards medical expenses and any financial burden that has been placed on the family or loved ones. Receiving an accelerated death benefit will reduce the amount of money your beneficiaries will collect after you pass away.
How to Qualify
Accelerated death benefits are triggered at specific circumstances, which is usually when there is terminal illness. Terminal illness is the most common reason to apply for accelerated death benefits. To qualify for it, you will need certification from a doctor or medical professional stating you are terminally ill and have a life expectancy of 1 to 2 years. If you do choose to add this to your policy, according to NerdWallet, the cost will already be included in your rates on most life insurance policies, and if it is not included you can add it for a small fee.
Although terminal illness is the most common reason to apply for accelerated death benefits, there are other illnesses and ailments that insurance companies will allow. However, it has to be very serious and must leave you with major medical bills and a shortened life expectancy. Some of these conditions are cancer, stroke, heart attack, ALS, kidney failure, major organ transplant, paralysis, or a coma. Furthermore, accelerated death benefits may also cover chronic illness, which the Centers for Disease Control and Prevention define as conditions that last 1 or more years and require ongoing medical attention or limit activities of daily living.
What Does it Cover?
The amount will come in a lump-sum and can be used however you want it. It is recommended that you use it for medical expenses, however you could also use the money for hospice, a nursing home, a private caretaker, vacation, or paying off a debt. However, the choice is yours because it is your money.
Accelerated death benefits can be a great way to help you out in your time of need. If you have any questions, then always seek help from a trusted insurance agent.
With over 40 years of experience RWM Insurance finds our clients the lowest rates available. Get your free quote today - click here.