Man Doing CalculationsOne of the most talked about benefits of purchasing life insurance is the accelerated death benefit (ADB). The ADB is a provision in life insurance policies that allows you to receive advances of your death benefit if you are diagnosed with an illness that's terminal. The ADB can provide you with the money necessary to get much-needed treatment, which can extend your life, so it's important to get the facts about your ADB, just in case you need it.

Eligibility for Claiming Your ADB Isn't Limited to Terminal Illnesses

In general, you may see many people refer only to terminal illnesses when they outline what conditions may trigger your ADB; however, there are other scenarios in which you can become eligible for your ADB. Acute illnesses, organ transplants, and the need to live in a nursing home are all ways in which you can take advantage of your ADB. All of these situations generally require extraordinary medical care, as such, your insurance company created this provision to help you cover those costs.

Your Beneficiary May Still Receive a Death Benefit

Even if you use a portion of your ADB, your beneficiary can still get a death benefit if you don't use it all. If you have to use your ADB, then the death benefit your beneficiary is entitled to is reduced by the amount you receive from your policy. Your proceeds from your ADB can range between 25 to 95 percent of the death benefit of the policy, so even if you receive a lot of proceeds to cover medical expenses, it's possible to have monies left to cover final expenses and leave some to your beneficiary.

Your ADB Is Tax-Free

Just like your death benefit, your ADB is tax-free. You are not responsible for paying taxes on the money, whether you get a lump sum payment or you receive your ADB as a monthly payment. Of course, it's important to note, if you receive monthly payments, you may have to get your payments certified to avoid taxes. You should speak with a tax professional about your certification requirements if you opt for this method of payment.

The ADB is an extraordinary feature that is included in most life insurance policies. You can use your ADB to cover expensive treatments which help improve your chances of survival. To learn more about getting a life insurance policy with the ADB feature, give us a call today.

Is your family protected? Call Heritage Insurance LTD at (800) 667-7640 for a free Moose Jaw SK life insurance quote.
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