Home Insurance Life Insurance What is Accelearated Death Benefit? (ADB)

What is Accelearated Death Benefit? (ADB)

By
Ankita Patil
-
398
5
SHARE

Accelearated Death Benefit

The name sounds different itself. Well, accelerated death benefits refer to the component of your life insurance policy which can be received by you even before your death. Let us simplify it. You want avail some of the death benefits of your life insurance policy. For that, you can claim for accelerated death benefits. This option comes with some of the life insurance products.

The concept of accelerated health benefits emerged in the year 1980s when diseases such as cancer and AIDS were diagnosed amongst many people. People had to undergo expensive treatments and medicines for coping with the disease. A middle-class person couldn’t afford such expensive treatments. Hence, insurance companied decided to introduce a life insurance product attached with the facility of accelerated death benefits.

To avail this facility, you must go through the terms and conditions before taking a life insurance policy. This facility is advantageous to the policyholders who want money during their lifetime. The facility of accelerated death benefits is attached to the life insurance policy product. The insurance company will ask you whether you want to take a simple life insurance policy or the one attached with accelerated death benefits. For illustrating this terminology of accelerated death benefits, let us take an example.

Working of accelerated death benefits

Let us say, you have taken a life insurance policy with the facility of accelerate death benefits. The insurance company will pay your survivors Rs. 5,00,000 after your death. This is known as death benefit provided for your survivors. You will be happy that your beloved family members are getting financial protection even after your death.

You were of 45 years when you purchased this policy. You are now of 75 years and have been detected with cancer. Just imagine a situation. Remember, you need to prepare for the worst! You need to undergo expensive treatments. Hence, you avail accelerated death benefits for covering your livelihood and medical expenditure. But after availing this facility, the life insurance claim amount will be reduced. Your survivors will receive only Rs.3,00,000 upon your death. But you have received coverage for your medical expenditure due to the facility of accelerated death benefits.

Recommended Read : Types of Life Insurance Policy

The importance of accelerated death benefits

The terms and conditions governing the facility of accelerated death benefits vary from insurer to insurer. You may even be asked to pay the premiums after you receive the accelerated death benefits under the policy. The policy with accelerated death benefits provides protection during your old age and related treatments. At that age, you won’t be able to avail any insurance policy and you will not be able to apply for a personal loan. Your family members will be willing to contribute some of your medical expenses. So, you may feel more secure and protected when you can avail accelerated death benefits easily. You can increase your survival rate due to the accelerated death benefits.

Conclusively, if you are thinking of taking a life insurance policy with accelerated death benefits, then it can be beneficial for you in your old age. But don’t forget to go through the rules and regulations governing the same.

Recommended Read :

RELATED ARTICLESMORE FROM AUTHOR

5 COMMENTS

  1. Accelerated death benefit is a great facility. It allows you to enjoy some benefits while you are alive. The best thing about this policy is that it enables you to cover your own medical expenses. The only thing is that the after death benefit decreases to some extent. It may sound a very lucrative policy but many fraudulent practices are going on, so it is better to study the terms and conditions of the policy along with the rating of your insurance company.

  2. This is a great way to ensure your medical expenses can be paid if something terrible happens. This way your family won’t have to pay outstanding bills for medical care when you die, because that is a rough time in grief where you can’t really bring yourself to do anything, let alone start paying bills.

  3. Accelerated Death Benefit seems like a good option for people who already have health and life insurance. I’m not too big on the concept of insurance, so I wouldn’t say the benefits are really huge. I feel you can save the same amount of money with savings instead of insurance. However, for people who prefer insurance, this would be a good option.

  4. Accelarated death benefits sounds great for people diagnosed with diseases like cancer. If some amount of money is used by the insurer during his lifetime to cover his emergency is surely a benefit. But the other factors like interest rate and other details should not be overlooked.

  5. The diseases like cancer, AIDS, diabetes involve regular medical checkups and expensive medical bills which are hard for middle class people to tackle. Having ADB insurance policy will help to deal with such expenses. If anyone is diagnosing with such illness then don’t forget to get policy with such benefit.

Comments are closed.