Acceleration Life Insurance

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 can receive benefits from acceleration life insurance if serious medical events, as outlined in the policy, occur, helping to cover related expenses. However, the amount paid out is deducted from the death benefit that the beneficiary will ultimately receive.

Acceleration life insurance is typically added as a supplement to an existing life insurance policy. Whole life and universal life policies often include this feature built in, while term policies usually offer it as an optional add-on, so it helps to know the different types of life insurance when shopping for a policy. The percentage of benefits granted can range from 20% to 100% of the death benefit. The payout is designed to cover expenses in cases where the policyholder is deemed terminally ill with death expected within a specified time frame, requires long-term care, or becomes medically incapacitated. Because the rider amount and qualifying conditions vary widely between insurers, comparing the best life insurance companies before buying a policy can help you find one with rider terms that match your needs. It is important to note that this policy does not replace the need for long-term health insurance.