Accelerated death benefit
Life policy provision paying part of the death benefit early for qualifying terminal or chronic illness.
Plain definition
Accelerated death benefit (living benefit) riders or built-in provisions pay a portion of the face amount while the insured is alive if diagnosed with a qualifying terminal illness, chronic illness, or critical illness as defined in the contract. The remainder goes to beneficiaries at death, reduced by amounts accelerated.
Why it matters
Illness costs can outpace savings; acceleration provides liquidity but permanently lowers the final death benefit unless restored per policy rules.
Example
A terminal illness rider pays 50% of $400,000 face amount for covered care costs. Beneficiaries later receive the remaining $200,000 minus fees stated in the rider.
Common misunderstanding
Accelerated benefits may affect Medicaid eligibility or be taxable in some situations—policy disclosures matter.
Policy language always controls. This is educational content, not advice. See our disclaimer.