What are accelerated death benefits also known as?

Accelerated death benefits are commonly referred to as "living benefits" because they allow policyholders to access a portion of their life insurance death benefit while they are still alive, typically in the case of a terminal illness or catastrophic health issue. This feature provides financial relief during a time when individuals may face significant medical expenses or care needs, enabling them to use the policy's death benefit to address their living costs and improve their quality of life.

This terminology emphasizes the benefit of having access to funds for care or other needs while still living, contrasting with benefits that are paid out only upon the death of the policyholder. As a result, these benefits highlight the supportive role of life insurance policies beyond just providing for beneficiaries after death.