What does ABR mean in GENERAL

An Accelerated Benefits Rider (ABR) is a type of insurance policy feature that grants policyholders the ability to access a portion of their death benefit while they are still alive.

The amount that can be accessed through an ABR depends on the specific insurance company's policies and will vary from one insurer to another. Generally speaking, most insurers allow policyholders to access up to 50% of their death benefit through an ABR.

Generally, any life insurance policyholder who has been diagnosed with a terminal illness or is expected to have a life expectancy of less than 12 months may be eligible for an ABR. However, some insurers may have different qualifications and restrictions in place so it's important to check with your specific insurer for more details.

The money received from an ABR can be used toward medical bills, long-term care costs, living expenses, educational needs and other qualified needs as determined by your insurer. Again, it's important to review the exact terms and conditions set forth by your particular insurer to make sure you understand how your accelerated benefits from the ABR may be spent.

Generally speaking, when your beneficiary receives payments resulting from your accelerated benefits rider there are no taxes due on those payments as long as all rules provided by the insurer are followed correctly and appropriately declared on tax forms in accordance with IRS rules and regulations. Note that this information is general only; it's important to confirm taxation implications with a qualified accountant.