Business, Legal & Accounting Glossary
An accelerated option is a clause that can be placed in a life insurance contract that allows the policyholder to collect some benefits prior to death. In other words, it “accelerates” the payment of benefits to a degree. On the other hand, it could also refer to the option of using the accrued cash value of a permanent life insurance policy to pay the policy’s remaining payments.
A standard life insurance policy pays out the death benefit only upon the policyholder’s death; but, under certain circumstances, an accelerated option may pay out the death benefit sooner. Typically, the policyholder must have a medically incapacitating disease, contract a long-term, high-cost illness, or require permanent nursing home confinement in order for the rider to be activated. This option provides the policyholder with the financial wherewithal to improve their everyday living until death while still providing their family with a partial death benefit.
Acceleration Clause
Acceleration Life Insurance
Accelerated Death Benefit
Additional Death Benefit
Accidental Death Insurance
Accelerative Endowment
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This glossary post was last updated: 20th January, 2022 | 0 Views.