Life insurance provides financial support to your family should you die. It can help support their needs for years after your death. Life insurance can provide support for mortgages, living expenses or even education costs.
Yet, many people become very ill before their death and this type of investment may offer some help. Some life insurance policies offer accelerated death benefits.
If you are shopping for insurance, consider this beneficial feature. Learn about how it may help your specific needs.
How Do Accelerated Death Benefits Work?
Accelerated death benefits, sometimes called ADB, is a type of life insurance attachment. It will allow the person who purchases the policy get a cash advance of sorts during their lifetime. The cash advance comes from the death benefit.
In a traditional life insurance policy, the death benefit is the amount paid to beneficiaries after your death. However, ADB works to provide financial support before your death to you.
It only applies in limited situations. For example, you must have a terminal illness to use these funds. It is often only available if the individual has less than a year to live.
ADB funds can be accessible for many needs. This may include funds for treatments and other costs to help your medical needs. It may help you to continue making payments towards your financial obligations. It may also help you to meet any ongoing needs you have until your death, such as buying food or paying for your home.
Accelerated death benefits became more common in the 1980's. They became a tool used to help reduce the financial strain that was commonly associated with those dying at a younger age, such as those diagnosed with AIDS. Today, they are far more extensive in their reach. The provide protection for many types of terminal or chronic conditions.
Not all life insurance policies offer this benefit. For many individuals, it may not seem like a necessary investment. Most people don’t plan to get ill. But, this type of financial tool can be very valuable to you should you become ill and faced with this type of risk. It may be an ideal way to invest in protection for your loved ones and yourself.
We are here to help you with all your life insurance needs. Our dedicated team of agents can help you get the best prices and coverage. Give us a call at 843-519-2557 today for a Florence SC life quote.