Jody Horetski
Life Insurance Consultant

An accelerated death benefit is a life insurance rider that can allow your clients to access a portion of their death benefit early if they’re diagnosed with a qualifying illness. It’s aimed to help relieve financial stress during difficult times.

This feature is designed to help client’s cover things like medical bills or the cost of care, but they can typically spend the money however they’d like, such as making their home more adaptable to their specific needs, building a ramp, buying a wheelchair or to hire help for home care needs. Think hospital bills, nursing home care, hospice, private caretaker services and dependent care.  Clients can also utilize the money to pay their mortgage, help with living expenses or replace lost income. This coverage might come in handy, if they simply need to take a vacation to relieve stress brought on by the illness.

 It’s important to note that if clients don’t need to utilize the living benefits, their beneficiaries will still get the full amount of death benefit.

You may be wondering how your clients qualify for an acceleration?

  • Terminal illness is often characterized by a life expectancy of 12 months or less.
  • Chronic illnesses that render an individual unable to perform at least two daily living activities (bathing, continence, dressing, eating, toileting and transferring) for at least 90 days.
  • Critical illnesses such as heart attack, stroke, cancer, or organ failure are generally included as well.

If you’re thinking of buying life insurance to provide some financial peace of mind for your clients and their loved ones, it’s important to consider how an accelerated death benefit may fit into your plans.