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When comparing accelerated death benefit amounts available on life insurance policies, it is important to understand the 2 primary methods of calculating the amount that can be accelerated:

Lien Approach VS Discount Approach

Lien Approach

  • Benefit Amount is predetermined for qualifying conditions
  • Death benefit reduced by accelerated amount
  • Policy premium remains the same

Discount Approach

  • Benefit amount depends on life expectancy and severity of the condition
  • Death benefit recalculated and reduced in greater proportion than accelerated amount which may be less than needed and lead to no remaining death benefit.
  • If death benifit remains, policy premium reduced.


Consider a situation where a healthy, 40 year old man who does not use tobacco is issued a $500,000 policy. At age 42 he is diagnosed with a critical illness. The competitor’s product has a range from $2,500 to $381,321. If he receives any accelerated death benefit, there is no remaining coverage for his heirs. With Ameritas, he is eligible for a $125,000 accelerated death benefit and he will still have life insurance coverage to protect         his heirs.

$500,000 Initial Death Benefit

Accelerated Benefit Paid

Remaining Death Benefit

Ameritas living benefit rider



Competitor with Discounted ABR

—>$381,321    (Life threatening)