Accelerated critical illness benefit
This benefit is provided when a policy pays the sum insured upon death or diagnosis of a critical illness, whichever occurs first. If the life assured suffers a critical illness, then the sum assured is paid and the policy is terminated i.e. payment of benefit is “accelerated” forward from payment on death. Some policies accelerate a portion of the sum assured in which case the contract stays in force and pays the balance of the sum assured upon subsequent death. Most policies accelerate 100% of the sum assured.
Entries from The Actuarial Profession's Glossaries has been produced by the Profession and is reproduced with the Profession's permission. The Actuarial Profession does not accept liability for the complete accuracy of the original material, given that it was prepared for educational purposes only.