Accelerated Death Benefit
Updated: 31 December 2024
What Does Accelerated Death Benefit Mean?
An accelerated death benefit (ADB) is an optional rider or supplemental benefit added to a life insurance policy. It allows the policyholder to receive cash advances from the policy’s death benefit if they are diagnosed with a terminal illness.
Insuranceopedia Explains Accelerated Death Benefit
An accelerated death benefit (ADB) allows policyholders to access a portion of their death benefit to cover specific medical expenses, such as life-sustaining treatments and long-term care. Introduced in the 1980s to support AIDS patients with healthcare costs, this benefit increases premium charges. Additionally, using the ADB reduces the death benefit paid to beneficiaries by a specified amount.
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