Accelerated Death Benefits Definition

Accelerated Death Benefits are payable to the insured when a medical diagnosis says that you have 1 to 2 years left to live, or if the illness/ disability requires long term care. The benefit is not always in the life insurance policy. To find out if you have an accelerated death benefit in your life insurance policy, call your insurance company. The accelerated death benefit can be paid in one lump sum up to 80% of your policy. This benefit does not have to be payments to an assisted living facility or to a nursing home, but to whatever the insured wants to do with it. Normally it is used when all other options to pay for home care, nursing care or assisted living has been exhausted. When the insured passes away, the life insurance policy amount is less than it would have been if the accelerated death benefit was not used.

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