Acceleration Life Insurance

AAA

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.

VIDEO

RELATED TERMS
  1. Charitable Gift Life Insurance

    A method of contributing to charity by taking out life insurance ...
  2. Group Life Insurance

    Life insurance offered by an employer or large-scale entity (i.e. ...
  3. Face Value

    The nominal value or dollar value of a security stated by the ...
  4. Beneficiary

    Anybody who gains an advantage and/or profits from something. ...
  5. Accelerated Death Benefit - ADB

    A benefit that can be attached to a life insurance policy that ...
  6. Lloyd's Of London

    A British insurance market where members join hands as syndicates ...
Related Articles
  1. Depreciation: Straight-Line Vs. Double-Declining ...
    Forex Education

    Depreciation: Straight-Line Vs. Double-Declining ...

  2. Use Real Estate To Put Off Tax Bills
    Options & Futures

    Use Real Estate To Put Off Tax Bills

  3. An Introduction To Depreciation
    Active Trading

    An Introduction To Depreciation

  4. Life Insurance
    Budgeting

    Life Insurance

comments powered by Disqus
Hot Definitions
  1. Walras' Law

    An economics law that suggests that the existence of excess supply in one market must be matched by excess demand in another ...
  2. Market Segmentation

    A marketing term referring to the aggregating of prospective buyers into groups (segments) that have common needs and will ...
  3. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following: ...
  4. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  5. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious ...
  6. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
Trading Center