Accelerated Option

Published: | Updated: May 10, 2016

Definition - What does Accelerated Option mean?

An accelerated option is a provision that may be included in a life insurance contract, and it enables the policyholder to receive partial benefits before their death. In other words, it "accelerates" the benefit payout to a certain extent. On the other hand, it may also refer to the option to use a permanent life insurance policy's accumulated cash value to pay the remaining premiums on it.

Insuranceopedia explains Accelerated Option

A normal life insurance policy only pays out the death benefit upon the policyholder's death; however, with an accelerated option, the policy may pay out sooner under certain conditions. Typically, for the rider to activate, the policyholder must have a medically incapacitating condition, acquire a long-term, high-cost illness, or require permanent nursing home confinement. This option allows the policyholder to have the financial means to make their daily life until death more comfortable while still providing a partial death benefit to their family once they pass.


How Well Do You Know Your Life Insurance?

The more you know about life insurance, the better prepared you are to find the best coverage for you.

Whether you're just starting to look into life insurance coverage or you've carried a policy for years, there's always something to learn.

Share this: