Accelerated benefits refer to the benefits available in some life insurance policies that allow the policy holder to receive before their death the amount stated on an insurance policy, which in normal course is to be received only on death or maturity. It is usually triggered by serious illness or injury requiring long-term care, catastrophic or terminal illness. It is also called living benefits.
Normally a beneficiary will receive up to 50% of the face value of the member's insurance coverage as accelerated benefit. The funds received from accelerated benefits can be used by the policy owner for any purpose such as for paying extra or experimental medical care, for making a trip, for improving a home, for hiring a nursing staff, or anything else.
A beneficiary is entitled for accelerated benefit if his/her physician has diagnosed their life expectancy as 9 months or less. Only an insured member can apply for an accelerated benefit.