Accelerated death benefit
Let's take a closer look at a common finance term - accelerated benefit. This refers to a portion of a policy's face amount, adjusted for interest, that can be received by the insured before their death, under certain conditions. This differs from a typical policy which pays out to beneficiaries after the insured's passing. Accelerated benefits may be activated if the insured is diagnosed with a terminal illness, requires extensive medical treatment, or is placed in a nursing home. However, any payments received during the insured's lifetime will be subtracted from the eventual death benefits paid to their beneficiaries.
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