Last year, many economists hoped that Zvi Griliches, a noted econometrician who was unquestionably deserving of the prize, and was suffering fromalongillness, would win.
In that case, the accelerated death benefits (meaning they are paid out before death) are fully excludable from income so long as the insured has been certified by a physician as having an illness or physical condition that can reasonably be expected to result in death within 24 months from the date of the certification.