Accelerated Death Benefit (ADB)

  • A policy provision or rider that lets you collect part of your death benefit before you die. If you have a terminal illness, the policy advances a specified portion of the death benefit to pay medical bills or other expenses; then, subtracts the amount from the death benefit your beneficiary receives.
    • An Accelerated Death Benefit Rider (ADBR) is an option added to a life insurance policy contract. The ADBR enables the policy owner to apply for an advance on the death benefit proceeds during the lifetime of the insured.

When can an ADB payment be requested?

The insured must have a limited life expectancy or meet certain medical circumstances to be eligible for an advanced payment of all or a portion of a life insurance policy’s death benefit, including:

  • Terminal illness, with death expected within 24 months;
  • Serious illness, such as cancer, which would result in a drastically reduced life expectancy without extensive treatment;
  • Catastrophic illness requiring extraordinary treatment, such as an organ transplant;
  • Long-term care needed due to the inability to perform several daily living activities, such as bathing, dressing, or eating;
  • Admittance to a hospice or permanent confinement in a nursing home