Accelerated Death Benefit
An Accelerated Death Benefit is a life insurance policy feature or \"Rider\" which could allow the insured/owner of the life insurance policy to receive a portion of the death benefit prior to the death of the insured. Most insurance carriers have specific guidelines to determine if a policy will qualify for an Accelerated Death Benefit pay out. Sometimes an ADB could be an alternative to a Life Settlement or Viatical Settlement.
The insured is the person covered by the policy and whose death will trigger a death benefit pay out by the life insurance carrier.
A Life Settlement is the sale of a life insurance policy generating proceeds that greatly exceeds the cash surrender value in the policy. Policy ownership is changed and the new owner assumes premium payments. In many states the sale of an existing life insurance policy for an amount less than the stated death benefit is considered to be a life settlement.
Life Settlement Agent
A Life Settlement Agent is an individual who directly advises and assits policy owners with the life settlement process. A Life Settlement Agent will typically work with a professional Life Settlement Broker.
The Owner in a life settlement transaction is the individual or entity who is listed as the policy owner by the carrier or certificate holder of the life insurance policy to be sold.
An individual is deemed to be Terminally Ill if he/she has an illness or condition which could reasonably lead to death in twenty four months or less.
A Viatical Settlement has been traditionally defined as the sale of an existing life insurance policy for an amount less than the stated death benefit involving an insured with a life expectancy of twenty four months or less (Terminally Ill). However, some states also use the legal term Viatical Settlement to describe a traditional Life Settlement.