Life insurance benefits made available to policyholders before death actually occurs.
In the event of catastrophic or long-term illness, some individuals may choose to apply these funds to medical bills, living expenses, or other situations requiring financial resources.
How much money a person can extract in accelerated benefits from a life insurance policy, and how close to death this can be done, depends totally on the insurance company and its set rules and guidelines. Each insurer has its own mandates, and some may withhold costs and profits before releasing money to the insured.
Once accelerated benefits are awarded and the policyholder passes, the remainder of the policy’s value, minus interest, go to the beneficiaries originally named on the plan.