Acceleration Life Insurance
Definition of "Acceleration life insurance"
Policy under which a portion of the death benefit (generally 25%) becomes payable to the insured for a specified medical condition prior to death. The purpose of the accelerated death benefit is to provide funds necessary to finance medical costs to extend the life of the insured. Upon proof of a specified medical condition, the insurance company will pay 25% of the death benefit. When the insured dies, the remainder of the death benefit is paid to the beneficiary, just as under a traditional life insurance policy.
Popular Insurance Terms
Section of the Internal Revenue Code that provides for the taking of the proceeds from one life insurance policy or annuity and the reinvesting of these proceeds immediately in another life ...
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