- 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.
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