Hell when your dying of cancer you need all the money you can get insurance companies charge interest when you take advantage of this provision due to declining health .Kinda like AIG u get hit by a 18 wheeler ,or lose a limb in a auto accident heres some pocket change farewell.
Accelerated Benefits Provisions (or Accelerated Death Benefit) are added to most policies sold today for free. They keep critically ill patients from being forced to sell their life insurance policies for pennies on the dollar to another person just to pay their escalating medical bills. That sounds like a darn gift they didn't have to add at all.
In most cases, the money is income tax free. The interest (not all companies charge interest for the whole period) would only add up during the time while you are still alive.
Basically, I'm saying you would be fortunate to have to pay interest because it means the money for you medical treatment is working.
Right? By whose standards?
Accelerated Benefit provisions are nothing but loans. Loans always accrue interest.
Would it be "nice" if the insurance companies didn't charge interest to terminally ill? Sure it would. It would be nice if banks and mortgage companies did the same thing for the terminally ill. But they don't.
Fact is, it's a business. Nothing wrong about it.
They could not offer you accelerated benefits and you can just wait until your dead for the beneficiaries to get everything. Nobody forces anyone to take the offer.