Accelerated Death Benefit (ADB)

What is an ‘Accelerated Death Benefit – ADB’

An accelerated death benefit (ADB) is a benefit that can be attached to a life insurance policy that enables the policy holder to receive cash advances against the death benefit in the case of being diagnosed with a terminal illness. Many individuals who choose the accelerated death benefit have less than one year to live and use the money for treatments and other costs needed to stay alive.

Explaining ‘Accelerated Death Benefit – ADB’

Choosing an insurance policy with an accelerated death benefit allows the policy holder to pay for their daily living in an effort to make it the most comfortable while also allowing the holder to look after his or her family once they pass away. This type of benefit was originally started in the late 1980s in an attempt to alleviate the financial pressures of those that were diagnosed with AIDS.

Some policies might have this option available even though it’s not mentioned in the contract.

Further Reading

  • The other crisis: the economics and financing of maternal, newborn and child health in Asia – [PDF]
  • Why does population aging matter so much for Asia? Population aging, economic growth, and economic security in Asia – [PDF]
  • Urban transport trends and policies in China and India: impacts of rapid economic growth – [PDF]
  • The role of the global economy in financing old age: the case of Singapore – [PDF]
  • Globalization, the Financial Crisis and Petty Commodity Production in India's Socially Regulated Informal Economy – [PDF]
  • The benefits of a secondary market for life insurance policies – [PDF]