Accelerated benefits allow annuity holders to access funds if they require home health care, are confined to a nursing home, or are terminally ill. Specifically, annuities may provide funds if a policyholder needs assistance with daily living activities due to impairment, has been in a nursing home for over 60 days after the annuity's effective date, or has a life expectancy under one year according to a physician. These benefits are often included at no additional cost in annuities.

1. Accelerated Benefits
By: Phil Wasserman
11/4/2014
Today it is common for annuities to allow for
accelerated benefits to pay for the following:
 Home Health Care Rider
o If you require Home Health Care Services by a
licensed Home Health Care provider as a result of
being impaired in performing two out of six activities
of daily living.
 Nursing Home Benefit Rider
o If you are confined to a licensed nursing home for
more than 60 days, and your confinement begins at
least one year after the annuity’s effective date.
 Terminal Illness Benefit Rider
o If a licensed physician certifies that you have been
diagnosed with an illness or condition that causes
your life expectancy to be less than one year.
These powerful benefits are usually included at no cost,
although not all annuities have them.