Acceleration Life Insurance
What Does Acceleration Life Insurance Mean?
Acceleration life insurance is a policy that allows the policyholder to receive a certain percentage of the death benefit before their death.
Acceleration life insurance is also known as an accelerated death benefit or accelerated benefit rider.
Insuranceopedia Explains Acceleration Life Insurance
Policyholders can receive benefits from acceleration life insurance if serious medical events, as outlined in the policy, occur, helping to cover related expenses. However, the amount paid out is deducted from the death benefit that the beneficiary will ultimately receive.
Acceleration life insurance is typically added as a supplement to an existing life insurance policy. The percentage of benefits granted can range from 20% to 100% of the death benefit. The payout is designed to cover expenses in cases where the policyholder is deemed terminally ill with death expected within a specified time frame, requires long-term care, or becomes medically incapacitated. It is important to note that this policy does not replace the need for long-term health insurance.
