Acceleration Life Insurance
Barron's Insurance Dictionary:
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Acceleration Life Insurance
Policy under which a portion of the death benefit (generally 25%) becomes payable to the insured for a specified medical condition prior to death. The purpose of the accelerated death benefit is to provide funds necessary to finance medical costs to extend the life of the insured. Upon proof of a specified medical condition, the insurance company will pay 25% of the death benefit. When the insured dies, the remainder of the death benefit is paid to the beneficiary , just as under a traditional life insurance policy.
| Accelerated Option, Accelerated Depreciation, Abusive Tax Shelter | |
| Accelerative Endowment, Acceptance, Accident |
Investopedia Financial Dictionary:
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Acceleration Life Insurance
A type of policy that pays a portion (typically 25% or 50%) of the death benefits (the face amount of the policy, less any outstanding loans or fees) in case of a specified illness or medical emergency.
Investopedia Says:
The accelerated death benefit provides funds necessary to pay for medical costs, to extend the life of the insured. Insurance companies pay the specified percentage of the death benefit in a lump sum.
Upon death, the remainder of the insured's death benefit is paid to the beneficiary, just as under a traditional life insurance policy.
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Barron's Insurance Dictionary
Dictionary of Insurance Terms. Copyright © 2008 by Barron's Educational Series, Inc. All rights reserved.
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