We often live as if there is nothing that can harm us — that we will continue to carry on with our life as we know it well into the future. We rarely stop to think about what would happen if a chronic illness or terminal illness would occur.
Often known as a living benefit, an accelerated death benefit rider can help give you the option to advance a portion of your life insurance policy's death benefit to use while you are still living.
How Living Benefits Work
Accelerated death benefit riders (ADBRs) allow you to receive an advance on your death benefit for select medical reasons, including:
- Terminal illness1, with death expected within a specified period;
- Chronic illness1, as specified in the life insurance policy; or
- A specific medical condition, as listed in the rider.2
ADBRs can help provide peace of mind for you and your family if you experience one of the conditions listed above, and can help to offset costs associated with illness or long-term care.
Use Living Benefits to Offset Many Expenses
While many people use living benefits to help offset the financial costs associated with an illness, there are no restrictions on how your ABDR is used. For example, you could use it to pay for hospital bills, medications and treatments or help fund education expenses and pay household bills. However, it's always a good idea to check with your insurance company for details on how you can use any living benefits rider3.
Living benefit riders are often issued with a life policy at no additional charge4. Some companies, however, may require an additional premium for the coverage. Talk to a financial professional to see what type of living benefit riders may be available on your insurance coverage.