1. This life insurance provision pays all or part of a policy’s death benefits while the policyholder’s still alive. Conditions include:

 

1. Proof the policyholder’s is terminally ill, with a life expectancy of <12 months

 

1. The policyholder has a specified life-threatening disease

 

1. The policy holder is in a long-term care facility (e.g., a nursing home)

 

By accepting an accelerated-benefit payment, the policyholder might be ruled ineligible for Medicaid or other government benefits. The payout may also be taxed.

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