Accelerated Death Benefits

    1. This life insurance provision pays all or part of a policy’s death benefits while the policyholder’s still alive. Conditions include:



    1. Proof the policyholder’s is terminally ill, with a life expectancy of <12 months



    1. The policyholder has a specified life-threatening disease



    1. The policy holder is in a long-term care facility (e.g., a nursing home)



By accepting an accelerated-benefit payment, the policyholder might be ruled ineligible for Medicaid or other government benefits. The payout may also be taxed.