Accelerated Benefit Option

Importance: 0.57

Is a company: no

Is a proper noun: no

Synonyms

  • early advance
  • pre-payout benefit
  • premature life insurance payout

Definition of Accelerated Benefit Option

  1. An option found in some insurance policies that allows the policyholder to request to receive benefits before they would normally be available. An accelerated benefit option can be used by terminally ill patients to receive a portion of the benefits from their life insurance policy in advance of their death.

Related Terms and Acronyms

  • Viator Definition,
    • A person who agrees to sell his or her life insurance policy to a third party.
  • Surrender Charge Definition,
    • A charge levied when a life insurance policyholder cancels his or her policy.
  • Spin-Life Definition,
    • A financial industry that specializes in buying life insurance policies from individuals or convincing individuals to take out new life insurance policies with an investor as a beneficiary.
  • Living Benefits Definition,
    • The option for a life insurance policyholder to receive a portion of their death benefit in advance of their death.
  • Surrender Rights Definition,
    • The contractual right for a life insurance or annuity policyholder to cancel his or her policy.
  • Viatical Settlement Definition,
    • A contract where an individual agrees to sell his or her life insurance policy to a third party before their death.
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