CLAIMING ACCELERATED DEATH BENEFIT (ADB) FROM YOUR LIFE INSURANCE POLICY IN YOUR LIFE

QUESTION:

Is it possible to receive accelerated death benefits from my life insurance policy if I obtained it just a month ago? I have reservations about this, and I'd like to elaborate on the reasons behind my doubt.

ANSWER:

Accelerated Death Benefits (ADB) are an additional feature that can be incorporated into a life insurance policy. This provision allows the policyholder to receive cash advances against the death benefit in the event of being diagnosed with a terminal illness or facing such a condition due to an accident. Insurance companies have extended the scope of ADB as an additional or supplementary benefit, allowing policyholders to utilize this benefit while keeping all other policy benefits intact.

There are two main categories of these benefits:

1.??? Critical Illnesses: This includes nearly 18 conditions related to the heart, eyesight, cancer, renal failure, stroke, multiple sclerosis, organ transplant, heart bypass, etc.

2.??? PTD (Permanent & Total Disability): This results from any illness or accident.

When you acquire a policy and undergo the underwriting process, your medical history plays a crucial role in determining your eligibility. Generally, a healthy status is a prerequisite for policies with Accelerated Death Benefits. In many cases, a medical examination is conducted to assess your health.

Additionally, there is a waiting period of approximately 180 days to file a claim for Accelerated Benefit Riders. These benefits do not manifest within a month; they develop over time. Insurance companies institute this waiting period condition as a safeguard.

However, if these conditions do arise, insurance companies will consider them under the following circumstances:

1.??? It was not a result of any pre-existing condition prior to the purchase of the life insurance policy.

2.??? It was not concealed during the underwriting process.

When submitting a claim, the reality of your illness will be revealed through medical tests and reports. It's important to note that insurance companies do not reject genuine claims.

Therefore, a thorough understanding of your life insurance policy's terms and conditions is crucial to ensure clarity about the benefits and how to avail them, eliminating any uncertainties.

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