Accelerated Living Benefits Riders – Overview of a Common Final Expense Insurance Benefit

The purpose of a final expense life insurance policy is to provide financial support – specifically to cover funeral, cremation, or other final expenses – to your loved ones in the event of your death. Many final expense policies come with an added benefit called an accelerated living benefit rider. An accelerated living benefit rider allows an insured to access a portion of their death benefit while they are still living in the event of a terminal illness, chronic illness, or long-term care needs. Here I will explain how an accelerated living benefit rider works on a final expense policy.

So, how does an accelerated living benefits rider work on a final expense policy?

An accelerated living benefit rider is an optional addition to many final expense policies that enables policyholders to access a portion of their death benefit while they are still alive. While they can function slightly differently, accelerated living benefits riders generally allow an insured who is diagnosed with a terminal illness, chronic illness, or who cannot complete two of the six activities of daily living to request to access some of the death benefit to pay for medical expenses, long-term care, or other expenses. The amount an insured can access depends on the specific terms of your policy, but it is commonly 50-80% of the death benefit.

So, who qualifies for an accelerated living benefit?

To qualify for an accelerated living benefit, an insured must meet the criteria specified in the policy. Usually, an insured must have a terminal illness that has a life expectancy of 12 months or less, a chronic illness with a physician’s certification of the condition, or be unable to complete at least 2 of the 6 activities of daily living (bathing, dressing, eating, toileting, getting in and out of a chair or bed, and control of bowel or bladder problems). Once an insured meets these qualifications, they can apply to access the accelerated living benefit.

What are the advantages of an accelerated living benefit?

The principal advantage of an accelerated living benefit is that it provides policyholders access to money when many need it most. The accelerate living benefit can be a source of peace to relieve some of the financial stress for an insured and their loved ones during a difficult time. Another advantage is that the funds from an accelerated living benefit is that the money may be used for any purpose, providing flexibility during a stressful time.

In conclusion, an accelerated living benefit rider is an important addition to a final expense policy for policyholders wanting to make sure that they and their loved ones can access their funds in the event of a terminal illness, chronic illness, or long-term care needs. If you are thinking about obtaining a final expense policy, make sure to ask about the availability of an accelerated living benefit rider and how it works for the specific policy you are offered.