This is another in our series on life insurance riders. Riders give you the opportunity to essentially customize your own life insurance policy by adding additional coverage. Learn more about life insurance riders. Today we are discussing one of the most popular riders currently on the market: accelerated death benefit riders.
Accelerated Death Benefit
Accelerated death benefit riders are designed to provide financial assistance, during your lifetime, if you become seriously ill. These life insurance riders have become relatively common in the industry in recent years; in fact they’re often included automatically or offered for a nominal cost. These riders allow you to collect a portion of your death benefit if you are diagnosed with a terminal illness that shortens your life expectancy. The policy will clearly define how much of your death benefit you can draw upon and will normally cap out between $250,000 and $500,000.
Proceeds from an accelerated death benefit rider can be used for anything including: medical bills, living expenses, in-home care, etc. It is however important to keep in mind that even if an insurance company offers an accelerated death benefit life insurance rider for free, there is often a fee charged when drawn upon.
Want to learn more about the life insurance riders available to you? We encourage you to contact us today! Our staff of highly experienced, licensed life insurance agents is available to help you compare the life insurance riders and policies that meet your needs and your budget.
We also encourage you to follow our Life Insurance Blog; here we address the industry trends and topics that impact you and your loved ones. While you’re here, check out the rest of our series on life insurance riders: