Explore commonly used personal finance terms.
Acceleration of benefits is an option in some life insurance policies that allows policyholders to access a portion of their death benefit early, typically in cases of terminal illness or severe medical conditions. This option provides financial relief for medical expenses or end-of-life care. While it reduces the amount paid to beneficiaries upon death, acceleration of benefits can be crucial for individuals facing high costs. It is commonly included in policies to add flexibility and support for policyholders during critical times.
