What is an

Accelerated Death Benefit?

The Accelerated Death Benefit (ADB) is the second of two tax-exempt Programs created by HIPAA. It is a carrier-sponsored feature in many individual and group life insurance policies for terminally ill Insureds with a life expectancy of 6 to 12 months. The Policy Owner receives a tax-exempt loan from the carrier, continues sufficient premium payments, and collects the net death benefit after the carrier deducts loan principal, interest, and fees.