Term Life Insurance Glossary

Accelerated death benefit rider

A supplementary life insurance policy benefit rider that allows a policyowner-insured to receive a specified portion of the policy’s death benefit before the policyowner insured’s death if certain conditions are met.

Also known as living benefit rider.

Accidental death benefit (ADB) rider

A supplementary life insurance policy benefit rider that provides for an amount of money in addition to the basic death benefit of a life insurance policy. This additional amount is payable only if the insured dies as the result of an accident.

Basic death benefit

The death benefit according to the terms of the original, basic contract of a life insurance policy. The basic death benefit does not include the benefit for any supplementary riders, such as an accidental death benefit (ADB) rider. For policies in which the death benefit remains constant, the basic death benefit is equivalent to the face amount.

Compare to death benefit and policy proceeds.

Death benefit

The amount of money paid or due to be paid when a person insured under a life insurance policy dies. This amount does not include adjustments for outstanding policy loans, dividends, paid-up additions, or late premium payments.

See also basic death benefit and policy proceeds.

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