Getting Accelerated Death Benefits From Your Life Insurance
If you or your loved one has been diagnosed with a terminal illness
, you know that bills for medical treatment and out-patient expenses can run beyond your capacity to pay. Health insurance can take care of certain expenses, but not all of them. What can you do when you fall short of money to make the necessary payments required to give your loved one the comfort and medical attention needed to improve his/her condition?What are Accelerated Death Benefits?
Fortunately, those who have life insurance have a clear option. You can easily apply for accelerated death benefits on your policy. Accelerated death benefits are an advance of your death benefits which would normally be given to your beneficiary. But since death is imminent for the policyholder and life insurance companies realize that you could use the money to advance your treatment options, to convalesce in a more comfortable environment, or use the money to personally make sure your familys finances are taken forthey provided a gracious provision that allows you access to the money before you die.
Accelerated death (ADB) benefits were initially offered in the 1980s to terminally ill AIDS patients. ADB was originally created as an act of grace, a policy liberalization, by the insurance companies to alleviate the financial pressures of those who suffered from what was then an extremely fatal disease.
Most companies are willing to pay up to 80 percent of your coverage as accelerated death benefits. Accelerated death benefits are deducted from the coverage amount, but practices do vary from company to company. Some companies offer accelerated death benefits in the form of a loan or an assignment. In such cases, the balance of coverage, less interest, will be paid to the insureds estate on death.
Who can qualify for Accelerated Death Benefits?
Anyone who holds a life insurance policy and has been diagnosed with a terminal illness can qualify for accelerated death benefits. These benefits are available on whole or term life insurance policies.
Are there any limitations on the use of accelerated death benefits?
Those who choose to receive accelerated death benefits generally have a year or two to live. You can use it to pay off your mortgage or put funds into investments designating their purpose. This money can be used for extra treatment, experimental medical care, to take a trip for convalescing, to improve a home, hire nursing staff, or anything else. You are free to do whatever you want with your accelerated death benefits as long as it is in accordance with the stipulations laid out in your life insurance policy.
If your policy does not mention accelerated death benefits, dont hesitate to ask your life insurance company. Many companies are willing to extend accelerated death benefits to terminally ill patients, even though it is not explicitly stated in the contract.
Does your life insurance policy include accelerated death benefit option?
Theres no telling when a terminal illness may strike you. Due to poor lifestyles and other hereditary factors, chronic diseases have become increasingly prevalent. According to the Centers of Disease Control and Prevention, chronic diseases such as heart disease, cancer and diabetes, are the leading cause of death and disability in the United States. They account for 70 percent of the deaths nationwide. So if you have an insurance policy, it s wise to make sure you can avail of accelerated death benefits.
Budgets may be tight, but life insurance is essential
If you dont have an insurance policy, you may want to consider getting one. Budgets are tight and there is a tendency to put off buying life insurance until the economy heals. But putting off life insurance for a rainy day, could spell financial disaster for the surviving members of your family. The economic downfall would make that much harder for them to eek out a living for themselves. A few dollars a month for life insurance paid now, could provide them with the financial security they need. You could provide your family with the means to pay off your mortgage so that they have the security of a home. You could provide funds for your kids college education. You would have peace of mind knowing that your family would be able to live in the same comfortable style they had been used to and not have to experience compounded grief by having to cope with additional financial stress if you died an unexpected death.
Think about it. Term life insurance rates are now at their competitive best. A reliable, aggregator website can help you find low-cost life insurance that suits your life insurance needs.
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