Acceleration Life Insurance
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.
Investopedia explains '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.