What is the Accelerated Death Benefit?
The Accelerated Death Benefit (ADB) is a provision in most
life insurance policies that allows a person to receive a portion
of their life insurance money early — to use while they are still
living. ADB is a standard in the industry and offered by most life
insurance carriers. Generally, a person can get part of the value of
their life insurance policy if they have a terminal illness and,
depending on the policy, have a life expectancy of six months to
two years. People with certain disabling conditions can also
qualify for ADB regardless of life expectancy. Policy guidelines
vary, but usually the benefit is 50 to 80 percent of the policy value.
Who can apply for an ADB?
Anyone who has a terminal condition should explore the
Accelerated Death Benefit option. People with other conditions,
such as Amyotrophic Lateral Sclerosis (ALS), those requiring
artificial life support or people with organ failure who are not
transplant candidates may also qualify depending on their
individual policy and state laws.
Can a spouse or child benefit from the ADB?
Life insurance policies vary. Many allow a person and their dependent spouse or domestic partner to apply for an ADB.
How can patients use the ADB?
Usually, there are no restrictions on how the ADB can be used.
Patients can pay for hospital bills, medications or experimental
treatment. Some patients use ADB funds to pay off their home
or make financial arrangements for their family. Others use the
funds for daily living expenses or to take a vacation.