ACCELERATION LIFE INSURANCE Meaning and
Definition
-
Acceleration life insurance is a type of insurance policy that provides an advance payout of a portion of the policy's death benefit to the insured individual or their beneficiaries if the insured is diagnosed with a terminal illness or a specified critical illness.
The primary purpose of acceleration life insurance is to offer financial support and security during times of significant health challenges. The policyholder typically needs to meet specific criteria, such as being diagnosed with a terminal illness that is likely to result in death within a certain time frame or being diagnosed with a critical illness listed in the policy.
Upon meeting the specified criteria, the insured may choose to accelerate a portion of the death benefit to pay for medical costs, treatment expenses, home healthcare, or other financial obligations that arise due to their illness. The accelerated amount is subtracted from the total life insurance death benefit, reducing the ultimate payout upon the insured's passing.
Acceleration life insurance provides individuals and their families with peace of mind by helping to alleviate the financial burden associated with terminal illnesses or critical conditions. This type of insurance can offer support during an emotionally and financially challenging period, allowing policyholders to focus on treatment, recovery, or spending quality time with loved ones rather than worrying about financial matters.
