Accelerated Option

Updated: 09 June 2023

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.

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