Can you please explain what accelerated death benefit with regard to life insurance is?

Ravi Shekhar, Ghaziabad

It is good that you are showing the keenness to understand an aspect of life insurance which is often missed. Accelerated death benefit is a provision that is offered by some life insurers on select policies, where in they allow a portion of the death benefit to be paid before death if the life insured has developed a terminal illness. This is an accelerated death benefit. The money received in advance helps the terminally ill person to pay for daily expenses and hospital costs. Some insurers also offer this as a rider, which can be packaged into the main policy or as an add-on rider. Normally, people who become eligible for the accelerated death benefit generally die within six months to two years of diagnosis. The benefit paid on death is reduced to the extent of accelerated death benefit that has already been paid out.

olmdesk@outlookindia.com