Accelerated Death Benefits (ADB)

An ADB is a partial advance of the insurance policy’s death benefit that is paid to the policy owner while the insured is still alive but has been diagnosed with a terminal illness. It is also known as a Living Benefit. This is generally a policy option, so not every insurance policy will have this feature. In addition, the person insured must have been diagnosed with a terminal illness and a limited life expectancy to qualify for an ADB. Generally, this life expectancy must be 24 months or less, but it varies by insurance provider, and may be as short as 6 months.

The percentage of an ADB can vary substantially from policy to policy, and may be tied to the policyholder’s medical condition and diagnosis. You may be able to receive 10-20% of the death benefit immediately upon meeting the criteria noted above. However, some companies may offer as much as 50% or more. The balance of the benefit will be paid when the insured passes away.

Please note that for coverage to be maintained, premiums must be paid until the insured passes away!

In many cases, a Viatical Settlement will generate more cash to meet immediate financial needs. For more information on Viatical Settlements, Click Here!