Understanding An Accelerated Death Benefit Rider

By on June 19, 2014

An accelerated death benefit rider can be a great way to ensure that you receive financial assistance from your insurance company in the event of a detrimental diagnosis.

If you find that you are in a medical situation where you have a terminal illness, you may want to consider the benefits of adding an accelerated death benefit rider to your life insurance policy.

How Does it Work?

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An accelerated death benefit rider is a component of your life insurance plan that can assist you in the event of a terminal diagnosis.

If you become terminally ill, a significant portion of your death benefit can be used to cover media expenses and treatments.

The majority of life insurance companies also allow you to use your death benefit for long-term care.

Depending on the amount of money that you withdraw from your life insurance policy, this will determine how much money your beneficiaries receive once you die.

As an example, if you have a $100,000.00 policy and you withdraw $75,000.00 for medical expenses, your beneficiaries will receive $25,000.00.

Should I Buy an Accelerated Death Benefit Rider?

There may be a variety of reasons as to why you will want to consider adding an accelerated death benefit rider to your life insurance plan.

The main reason could be due to a family history of illness.

This can help to protect you in the event of being affected by an ailment. It is important to remember that if you are already sick, it may be difficult (or impossible) to purchase an accelerated death benefit rider.

You should consult a licensed life insurance agent to determine if there are any alternative options available to you.

The Cost of an Accelerated Death Benefit Rider

When looking into life insurance plans, it is imperative that you consider the amount of money that you will be putting into your coverage.

Depending on the type of life insurance policy that you purchase, an accelerated death benefit rider may or may not be included. If it is not included, consult your life insurance company to determine how much it will cost.

The majority of companies add it at no additional cost, but depending on the company you’re look at, adding the rider to your policy may result in a higher premium. This option can only be added when the application is being submitted; it can’t be added later on-

If you have a family history of medical ailments and fear that you may become sick in the future, it is important to consider an accelerated death benefit rider.

With the ability to cover your medical expenses and still provide your beneficiaries with a sum of money once your death, you can acquire peace of mind from your policy.