What is Accelerated Death Benefit Rider?

[fatima]

Will it take care of medical expensive treatment cost?

 

[Your_PA_Agent]

Hello Fatima,

Accelerated Death Benefit is a benefit that if god forbid you were to become terminally ill it would pay up to 90% or at least leaving 10k active in your insurance to help with medical cost.


I'd check with your Life Insuranxe Carrier and state, what state do you reside in?


Also, since you are asking about this rider I hope everything is okay with your family and yourself.


Thanks,


Josh

 

[rousemark]

The amount of benefit that can be accelerated and the triggers for acceleration can vary from company to company. Some will only accelerate for terminal illness as defined by the company. Benefits can range from 50% to 100% depending on the policy. Some companies require death be expected within 24 months and others 12 months.

Many companies also offer accelerated benefits for critical illnesses such as cancer, heart attack, stroke, heart surgery, etc. Some also offer accelerated benefits for chronic illnesses that result in the inability to perform certain daily activities such as feeding, dressing, transferring, bathing, etc without the assistance of another person.

AGLA, for example has two different types of ABRs. One is the free rider that is included in their Quality of Life products. It will pay a benefit based upon the effect the qualifying event will have on the insured's mortality. The other is a rider that pays a flat benefit upon the occurrence of a qualifying event. They limit that rider to 15% of the policy face. The money under an ABR is paid directly to the insured and can be used by them for anything they desire, including the payment of medical bills. However, since the number of events covered are limited, a person should not attempt to use life insurance with ABRs as a substitute for Major medical coverage.