A relatively new innovation to Life Insurance policies are the Accelerated Death Benefit riders(ABR's) most companies are including now.  There are two types of ABR's: Chronic Illness and Terminal Illness.  The Chronic Illness riders are only available on Permanent Life insurance, and the Terminal Illness riders are available on both Term and Permanent policies.

Accelerated Benefit Riders for Chronic Illness/Injury

The ABR Chronic Illness riders are designed to deal with chronic illnesses or a disabling injury and can be an alternative or supplement to Long Term Care Insurance.  Long Term Care Insurance is designed to insure against the cost of having a chronic illness or disabling injury and needing care (usually in retirement years) from either a nursing home, assisted living facility, or a home health care provider.  One of the big concerns with Long Term Care has always been "What if I never use it?".  With traditional Long Term Care if you die before using the benefits some feel they have wasted their money.  With an ABR rider on a life insurance policy if the insured does not use their Death Benefit to deal with a chronic illness while they are alive their heirs will receive it when they die.  With some companies these riders are free on the front end and then you pay a fee if you choose to use them on the back end.  With other companies you have the option to pay for the rider on the front end, and pay a set yearly fee.  You would then receive 100% of the benefit on the back end instead of paying the fees at the time of use.  Some of these riders also allow the money to be paid directly to the insured in the form of a check instead of the payment being made to an institution.  The other benefit of enacting these riders is that most companies will waive the premium once the ABR is enacted. 

Accelerated Benefit Riders for Terminal Illness

The other version of the ABR is the Terminal Illness variety.  This rider is free with most policies and available on all types of life insurance including term.  The terms usually provide access to 50-100% of the Death Benefit up to a limit while the insured is still alive.  For example one company's might read, if you are diagnosed by a physician to be terminally ill within the next 24 months you can accelerate 50% of your Death Benefit up to $500,000.  All of this is of course at your option as the policyholder.

The Accelerated Benefit Riders are an added value and innovation that many people seem to find great value in having included with their policy.