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An accelerated benefit as applied to Life Insurance is usually a purchase of the policy for immediate cash. In exchange for the cash the purchaser becomes the beneficiary. In this way part of the death benefit comes to the individual during life.
The purchaser assumes the risk of how long until death gives repayment and profit for the money advanced.
Some policies have an accelerated death benefit clause. If purchased this allows the owner to redeem the face value (or whatever the agreement stipulates) upon proof that death is imminant within a spedified time as determined by medical experts. It is unlikely that the full face value of the policy will be paid as the insurance company assumes some risk that death might not occur in the projected time.
There can be tax consequences for receiving benefits before they are due. Consult a CPA or Tax Attorney on this. Taxable income can reduce the expected benefit, thus making the receiver still short on funds to take care of immediate needs.
What else can I help you with?
What are the benefits of accelerated depreciation?
Presumably you mean when doing tax accounting. Depreciation is an expense. Expense lowers income, which lowers the tax payable. However, as the same amount of depreciation will be taken on an asset overall, accelerated only meaning a larger amount is taken quicker...in latter years the benfit reverses...that is the amount of book (or non accelerated depreciation) is higher than the accelerated one, and less tax expense is received. hence, the difference is to lower taxable income at first and increase it later...providing cash (less tax) sooner, and requiring more cash later. So the time value of the cash savings sooner is the real benefit.
Accelerated depreciation method?
Accelerated depreciation is method in which double rate for depreciation is used as compare to straight line method.
What is the advantage of accelerated depreciation?
Accelerated depreciation allows a company to take a higher upfront depreciation expense. Higher depreciation means a lower profit, and lower taxes to pay.
What is Tangible Vs Tangible benefit?
Tangible Benefit: - It is a benefit to a person or organization which can be felt and touched. It is a real benefit which is straight forward. Ex: Saving money Intangible Benefit: - It is an indirect benefit which can't be felt or touched. Ex: Saving time
Benefits of accelerated depreciation method?
benefits of accelerated depreciation #provide a greater tax shield effect than other methods (SL or UOP). #Higher cash flow and lower maintenance costs when equipments are in good condition
The monthly benefit available for long term care in an accelerated death benefit is what percent of the life insurance policy's face value?
The benefit for long-term care in an accelerated death benefit may range from one-fourth up to all of your funds in the death benefit. There are other factors that determine the amount, which may include the state where you are located and terms of contract. You also have the option to receive the benefit via lump sum or monthly.
Can burrow from your life insurance?
If your life insurance policy has cash value, you can borrow from the cash value inside. If you have a term policy with an accelerated death benefit rider then you may be able to borrow against the death benefit if you have a terminal illness.
Is accelerated a verb?
Yes. Example: I accelerated forward. "I" is the subject, "accelerated" is the verb, and "forward" is the adverb.
How do you use the word accelerated in a sentence?
The car accelerated out of the garage and struck a lamppost. With government funding, the project proceeded at an accelerated pace.
When was Accelerated-X created?
Accelerated-X was created in 1994.
Which life insurance riders would add no additional cost to a life insurance policy?
Some carriers include the following riders in a life insurance policy, without any additional cost: - Accelerated benefit rider (partial benefit paid in case of terminal illness) - Accidental death benefit (additional benefit in case of accidental death) - Waiver of premium (most companies will charge extra premium for this rider).
What is the context clue to the word accelerated?
In the sentence "The car accelerated down the highway," the word "accelerated" means that the car increased its speed.
When was Accelerated Christian Education created?
Accelerated Christian Education was created in 1970.
When was Accelerated Evolution created?
Accelerated Evolution was created on 2003-03-31.
When did Ridge Racer Accelerated happen?
Ridge Racer Accelerated happened in 2009.
Can you give me some sentences using the word accelerated?
The new training program accelerated the employees' learning curve. The car accelerated quickly as the driver pressed on the gas pedal. The company's growth was accelerated by its recent marketing campaign. The scientist proposed using a catalyst to accelerate the reaction process.
How do you use accelerated math at home?
To do accelerated math at home, you can get ideas on various websites. Accelerated math is going to be different types of math for different children.
