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GLOSSARY

Canadian Financial, Real Estate and Mortgage Glossary

How often this word is used
 
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50% - Moderately

Accelerated Benefit Option


Synonyms:early advance, pre-payout benefit, premature life insurance payout
Filed Under: estate-management, insurance
Tags: insurance, life insurance
 

Definition of accelerated benefit option

accelerated benefit option
1. An option found in some insurance policies that allows the policyholder to request to receive benefits before they would normally be available. An accelerated benefit option can be used by terminally ill patients to receive a portion of the benefits from their life insurance policy in advance of their death.

Related Terms and Acronyms:

  • living benefits   The option for a life insurance policyholder to receive a portion of their death benefit in advance of their death.
  • spin-life   A financial industry that specializes in buying life insurance policies from individuals or convincing individuals to take out new life insurance policies with an investor as a beneficiary.
  • surrender charge   A charge levied when a life insurance policyholder cancels his or her policy.
  • surrender rights   The contractual right for a life insurance or annuity policyholder to cancel his or her policy.
  • viatical settlement   A contract where an individual agrees to sell his or her life insurance policy to a third party before their death.
  • viator   A person who agrees to sell his or her life insurance policy to a third party.

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