How an accelerated death benefit rider works
If you become terminally ill, you can take out a portion of the death benefit from your insurance policy as cash, which can then be used to cover the costs of medical expenses, treatments, or long-term care. Any cash that is taken out of the policy will not be distributed as a part of the death benefit (the money that the insurance company would pay your beneficiaries when you die), but it can be used for immediate expenses.
Reasons for purchasing an accelerated death benefit rider
If you have a family history of illness you might be interested in purchasing this rider, as it can help provide financial assistance if you should get sick. If you are already sick, you may not be able to purchase this rider, so if you're already sick and you're interested in purchasing an accelerated death benefit rider you should consult with a licensed life insurance agent to figure out what your options are.
Accelerated death benefit rider cost
The accelerated death benefit may come standard with your policy, or you may have to add it on as a rider. In some cases, adding the rider may result in a higher premium, though often it is included at no additional cost.
Other types of insurance riders
Common types of insurance riders include: