Life Insurance Basics
What is a life insurance accelerated benefit for chronic illness?
An accelerated benefit for chronic illness allows you to access a portion of your life insurance death benefit while you are still alive if you are diagnosed with a chronic illness. A chronic illness is defined as the inability to perform 2 of 6 activities of daily living or severe cognitive impairment.
Key Points
- Chronic illness rider: access death benefit if diagnosed with chronic illness
- Chronic illness: inability to perform 2 of 6 ADLs or severe cognitive impairment
- Access portion of death benefit while alive
- Reduces the death benefit paid to beneficiaries
- Often included at no additional cost or low cost