How do accelerated death benefits work?
More than 200 insurers now offer this “living benefits” option to ease the financial burdens of the seriously ill or incapacitated. It allows policyholders to receive all or part of the policy’s proceeds prior to death under certain circumstances. Because payments may affect tax status and Medicare eligibility, and will be deducted from the overall benefits paid later to beneficiaries, policyholders should thoroughly investigate using this benefit in advance.
