Accelerated Death Benefit Rider

Receive a portion of the death benefit in advance if diagnosed with a terminal illness — The accelerated death benefit (ADB) rider lets the insured receive part of the death benefit while alive, typically upon diagnosis of a terminal illness with a limited life expectancy (commonly 12 months or less) or a qualifying chronic illness under California rules (CIC §10295 et seq.). The amount received reduces the death benefit payable to the beneficiary, and the payment is often income-tax free. It is not an interest-free loan of the full face amount, is not accidental-death double indemnity, and is payable only for qualifying health conditions, not for any reason.

CA-specific example

Receive part of the death benefit in advance while living — An accelerated death benefit rider, also called a living needs or living benefit rider, permits the policyowner to receive a portion of the death benefit in advance if the insured is diagnosed with a terminal illness, typically with a life expectancy of one year or less, though policy terms vary. The amount paid is generally the face amount reduced by an interest discount and any outstanding loans. The remaining death benefit is reduced proportionately. This rider provides funds for medical care and final expenses during the insured's lifetime.

National insurance concept