Life insurance is an important part of financial planning, as it provides financial security for your loved ones in the event of your unexpected death. However, many people are not aware of the additional benefits that can be added to a life insurance policy, such as an Accelerated Death Benefit Rider, also known as Living Benefits. In this blog post, we'll explain what an Accelerated Death Benefit Rider is and how it can fast track your financial security.
What is an Accelerated Death Benefit Rider?
An Accelerated Death Benefit Rider (ADBR) is an additional benefit that may be included or can be added to a life insurance policy. It allows the policyholder to receive a portion of the death benefit before they pass away, in the event of a terminal illness or other qualifying event. This can help ease the financial burden on the policyholder and their loved ones during a difficult time.
How Does it Work?
When a policyholder is diagnosed with a terminal illness or other qualifying event, they can activate the ADBR. The policyholder will receive a portion of the death benefit, which can be used to cover medical expenses or other costs associated with the illness. The amount that can be received varies depending on the policy and the insurance company, but it typically ranges from 25-95% of the death benefit.
The amount received is subtracted from the total death benefit, which means that the remaining benefit will be lower. However, this can be a valuable benefit for policyholders who need financial assistance during a difficult time.
Benefits of an ADBR
One of the main benefits of an ADBR is the financial assistance it provides during a difficult time. Policyholders can use the funds to cover medical expenses or other costs associated with their illness, which can help ease the financial burden on their loved ones.
Another benefit of an ADBR is that it can provide peace of mind. Knowing that financial assistance is available, in the event of a terminal illness or other qualifying event, can help alleviate stress and anxiety during a difficult time.
Finally, an ADBR can also be a cost-effective option. Rather than purchasing a separate policy for critical illness or long-term care, an ADBR can provide similar benefits at a lower cost. Overall, an Accelerated Death Benefit Rider is an important benefit of a life insurance policy. It provides financial assistance during a difficult time and can fast track your financial security. If you're considering purchasing a life insurance policy, be sure to ask about the availability of an ADBR or Living Benefits and how it can benefit you and your loved ones.
Looking forward for the opportunity to serve you and your family.
Ivonne Cabrera
Independent Life Insurance Broker
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