What does the term "accelerated death benefit" mean?

The term "accelerated death benefit" refers to a provision that allows an insured individual, who has been diagnosed with a terminal illness, to access a portion of their death benefit while they are still alive. This feature is designed to provide financial support to the insured during a critical time, enabling them to cover medical expenses, settle debts, or manage other financial obligations associated with their illness.

The key aspect of this provision is its emphasis on severe medical conditions that likely shorten life expectancy, rather than merely changing the payout structure or altering premium payments. Given that the benefit is accessed when the insured is terminally ill, it allows individuals the opportunity to utilize their policy in a way that can provide peace of mind and financial relief when they need it the most.