Accelerated Death Benefit

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.

Because rider availability, eligibility rules, and payout limits differ from one insurer to the next, it’s worth comparing the top life insurance companies before locking in a policy that includes this feature.

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.

People living with serious health conditions often want to know how an ADB works alongside coverage built for their situation, such as life insurance for chronic illnesses.