What does accelerated benefits allow in a life insurance policy?

Accelerated benefits in a life insurance policy refer to provisions that allow the policyholder to receive a portion of the death benefit before the insured passes away, usually under specific circumstances such as terminal illness, chronic illness, or critical illness. This feature enables policyholders to access funds when they need them most, allowing for medical expenses or other immediate financial needs without having to wait for the death benefit to be paid out upon the insured's death.

The key aspect of this provision is that it typically only involves a portion of the total death benefit and is contingent upon certain eligibility criteria being met. This financial tool offers flexibility and can provide significant support to the policyholder and their family during difficult times, enhancing the overall utility of the life insurance policy.