Life Insurance Accelerated Death Benefit

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  • #87385
    marions
    Moderator

    Thanks, Matt, for the excellent advice.

    #11074
    mattreidy
    Spectator

    What is the Accelerated Death Benefit?
    The Accelerated Death Benefit (ADB) is a provision in most
    life insurance policies that allows a person to receive a portion
    of their life insurance money early — to use while they are still
    living. ADB is a standard in the industry and offered by most life
    insurance carriers. Generally, a person can get part of the value of
    their life insurance policy if they have a terminal illness and,
    depending on the policy, have a life expectancy of six months to
    two years. People with certain disabling conditions can also
    qualify for ADB regardless of life expectancy. Policy guidelines
    vary, but usually the benefit is 50 to 80 percent of the policy value.

    Who can apply for an ADB?
    Anyone who has a terminal condition should explore the
    Accelerated Death Benefit option. People with other conditions,
    such as Amyotrophic Lateral Sclerosis (ALS), those requiring
    artificial life support or people with organ failure who are not
    transplant candidates may also qualify depending on their
    individual policy and state laws.

    Can a spouse or child benefit from the ADB?
    Life insurance policies vary. Many allow a person and their dependent spouse or domestic partner to apply for an ADB.

    How can patients use the ADB?
    Usually, there are no restrictions on how the ADB can be used.
    Patients can pay for hospital bills, medications or experimental
    treatment. Some patients use ADB funds to pay off their home
    or make financial arrangements for their family. Others use the
    funds for daily living expenses or to take a vacation.

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