- This life insurance provision pays all or part of a policy’s death benefits while the policyholder’s still alive. Conditions include:
- Proof the policyholder’s is terminally ill, with a life expectancy of <12 months
- The policyholder has a specified life-threatening disease
By accepting an accelerated-benefit payment, the policyholder might be ruled ineligible for Medicaid or other government benefits. The payout may also be taxed.