Acceleration Life Insurance
Definition - What does Acceleration Life Insurance mean?
Acceleration life insurance is a policy that allows the policyholder to receive a certain percentage of the death benefit before their death.
Acceleration life insurance is also known as an accelerated death benefit or accelerated benefit rider.
Insuranceopedia explains Acceleration Life Insurance
Policyholders receive the benefits of acceleration life insurance in the event that serious medical events stated in the policy take place in order to cover expenses incurred as a result. However, the amount given out is deducted from the death benefit amount the beneficiary will ultimately receive.
Acceleration life insurance is usually added as a supplement to an existing life insurance policy. The percentage of benefits to be granted may fall between 20 to 100 percent of the death benefit. The payout covers the expenses expected in the event that the policyholder is deemed terminally ill and death is expected to happen within a specified time frame; they need long-term care; or they become medically incapacitated. This policy in no way replaces the need for long-term health insurance.
CLUE Yourself In: How Your Claims History Informs Your Insurance Future