Sara Routhier, Managing Editor and Outreach Director, has professional experience as an educator, SEO specialist, and content marketer. She has over five years of experience in the insurance industry. As a researcher, data nerd, writer, and editor she strives to curate educational, enlightening articles that provide you with the must-know facts and best-kept secrets within the overwhelming world o...

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insur...

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Reviewed by Leslie Kasperowicz
Farmers CSR for 4 Years

UPDATED: Jun 30, 2021

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The Brief

  • An accelerated death benefit rider allows policyholders to use their policy to help pay for medical bills if they are terminally ill
  • The accelerated death benefit rider is typically a free add-on to any permanent life insurance policy
  • Companies offer varying rates for life insurance policies based on a variety of factors

Adding an accelerated death benefit rider to your life insurance policy is a simple process, and the benefits of having the rider could be quite helpful to you and your family.

If you are considering getting a life insurance policy — or if you are wondering how much term or whole life insurance costs — you may also want to take additional riders into consideration.

If you’re searching for affordable life insurance with an accelerated death benefit rider, enter your ZIP code above to compare top companies in your area.

What is an accelerated death benefit rider?

The accelerated death benefit provision in a life insurance policy is known as an accelerated death benefit rider.

An accelerated death benefit rider for life insurance is an add-on available for your existing whole or permanent life insurance policy.

The accelerated death benefit rider allows policyholders to tap into their existing insurance policy in the event that they develop some type of terminal illness or other serious medical condition.

Typically, life insurance companies will allow policyholders to use their accelerated death benefit rider if they can confirm with a licensed medical professional that they likely have less than two years to live.

The amount of money an individual is eligible to receive through an accelerated death benefit rider is up to a specific percentage of their entire policy’s death benefit amount.

This percentage is determined individually by a person’s life insurance company.

Essentially, the accelerated death benefit rider is an option for people who encounter expensive end-of-life care costs. In these situations, the rider can help the policyholder with certain financial obligations.

Often referred to as a living benefit rider, the accelerated death benefit rider can be quite helpful with unforeseen medical expenses and other financial obligations.

This rider also allows your family members and loved ones to avoid paying funeral and burial costs.

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Which companies offer an accelerated death benefit rider?

Many top insurance companies offer riders to their policyholders, so you will likely not have trouble finding an accelerated death benefit rider with a life insurance company that you trust.

Companies like State Farm, Nationwide, and Liberty Mutual all offer an accelerated death benefit rider. Read our Nationwide life insurance review to learn more about this company.

With so many options out there, you will want to check with many different companies to be sure that you end up with a policy that works best for your life and goals.

As you find life insurance companies you like, you will likely also be able to add an accelerated death benefit rider to your policy with that company, giving you peace of mind and comfort.

How does an accelerated death benefit rider work?

Because the accelerated benefits provision will provide for an early payment of the death benefit, an accelerated death benefit rider is less about having a payout and more about using some of the money in your policy when you need it most.

If you use your accelerated death benefit rider, you will be subtracting that amount from your insurance policy, meaning the beneficiaries of your policy will not have access to it.

Some policyholders may be concerned about the drawback of their beneficiaries not receiving the full amount of the policy.

But others could see it as a helpful way to take care of their financial obligations and avoid burdening their loved ones.

How much does an accelerated death benefit rider cost?

With most life insurance companies, an accelerated death benefit rider is a free add-on to any whole or permanent life insurance policy.

Because of this, your life insurance rates with an accelerated death benefit rider should not be any different than if you didn’t add the rider to your policy.

As you consider the cost of a typical whole life insurance policy, note the average rates for men in the chart below.

Average Whole Life Insurance Rates with Companies that Offer Accelerated Death Benefit Rider
Companies50-Year Rates55-Year Rates60-Year Rates65-Year Rates
Foresters Financial $15.31$20.83$34.04$43.66
MassMutual$16.97$24.10$35.50$61.68
AIG $17.01$26.62$38.22$55.07
AAA $17.78$22.53$37.14$59.93
Mutual of Omaha$18.88$27.65$41.67$59.73
Assurity $20.10$28.45$44.20$67.08
TransAmerica $20.21$30.10$42.66$71.29
Prudential$21.88$28.18$37.72$58.45
State Farm $26.54$34.45$51.50$83.09
Liberty Mutual $40.32$55.35$95.58$141.93
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As you can see, life insurance rates vary depending on the company you choose and the additional features and specificities of each policy.

Because of this, accelerated death benefit rider life insurance quotes often vary.

When you purchase or update your life insurance policy, be sure to ask about the cost of adding an accelerated death benefit rider.

Since all companies are different, it’s important to consider that some may have additional fees.

For instance, some insurance companies will implement a one-time fee to enact an accelerated death benefit rider. This fee can cost anywhere from $100 to $200.

Life insurance policies, along with add-ons like an accelerated death benefit rider, are not subject to federal income tax.

Because of this, you will not have to worry about accelerated death benefit taxation for your policy rider.

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Should I get an accelerated death benefit rider?

It’s not a bad idea to add an accelerated death benefit rider to your life insurance policy. If you choose not to enact it, the rider will likely not cost you anything extra.

And if you do need it, you’ll be happy to have it as a source of comfort.

You should always shop around for your insurance coverage online to be sure you find the best policy for your needs.

If you are looking to buy an accelerated death benefit rider with your life insurance, enter your ZIP code below today.