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Accelerated Death Benefits Explained



In this video, we’re going to look at accelerated death benefits which is a feature found in some term life insurance policies in Canada. The purpose of accelerated death benefits is to allow someone that has a life insurance policy and a limited life expectancy to access a portion of their death benefit before they actually die so they can use it for things such as medical treatment or family time or what have you.

There is a prerequisite that your life expectancy is dramatically reduced, typically expected to be less than two years. And any such proceeds are paid out as a loan against your eventual death benefits so when you do pass away the final amounts that will be paid out will be reduced by the amount of accelerated death benefits previously paid out.