Acceleration Life Insurance

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DEFINITION of 'Acceleration Life Insurance'

A type of policy that pays a portion (typically 25\% or 50\%) of the death benefits (the face amount of the policy, less any outstanding loans or fees) in case of a specified illness or medical emergency.

BREAKING DOWN 'Acceleration Life Insurance'

The accelerated death benefit provides funds necessary to pay for medical costs, to extend the life of the insured. Insurance companies pay the specified percentage of the death benefit in a lump sum.

Upon death, the remainder of the insured's death benefit is paid to the beneficiary, just as under a traditional life insurance policy.

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RELATED FAQS
  1. What is term insurance?

    Term insurance is a type of life insurance policy that provides coverage for a certain period of time, or a specified "term" ... Read Answer >>
  2. How do I determine the face value of a life insurance policy?

    Read about how to determined the face value for any life insurance policy, and see what circumstances can trigger a change ... Read Answer >>
  3. Can policy benefits be paid out in 10, 20, and 30 year increments to its beneficiaries? ...

    I would like to know if I buy a $200k policy, and name my sons and/ or grandchildren as beneficiaries, can I specify ... Read Answer >>
  4. What should I do with my husband's annuity now that he has passed away?

    I am the sole surviving owner and beneficiary of my husband's and my annuity. My husband passed prior to annuitization ... Read Answer >>
  5. What is a convertible insurance policy?

    A convertible insurance policy is a term usually related to life insurance. To understand a convertible policy, you must ... Read Answer >>
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    Learn about your rights as an insured when it comes to your insurance policy being canceled, including how to access your ... Read Answer >>
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