What is an accelerated death benefit rider?

What is an accelerated death benefit rider?

• A. A feature that guarantees lifelong coverage
• B. A rider that allows early access to death benefits due to terminal illness
• C. A policy addition that increases premiums over time
• D. A clause that limits benefits for certain conditions

Answer: (B)

An accelerated death benefit rider is a provision in a life insurance policy that allows the policyholder to access a portion of the death benefit while still alive, typically in cases of terminal illness. This feature is particularly beneficial for individuals who are diagnosed with a terminal condition and wish to use some of the death benefits to cover medical expenses, pay for care, or even enjoy their remaining time. This rider provides financial assistance to alleviate the burden of significant medical costs and support end-of-life care decisions. The other options do not accurately define the accelerated death benefit rider. For instance, a feature that guarantees lifelong coverage pertains more to whole life insurance policies rather than a rider that facilitates early access to benefits. Increasing premiums over time usually refers to certain types of insurance products but is not something that describes a rider like the accelerated benefit. Lastly, a clause that limits benefits for certain conditions typically refers to exclusions or limitations, which is not related to the ability to access benefits early due to a terminal illness.

An accelerated death benefit rider is a provision in a life insurance policy that allows the policyholder to access a portion of the death benefit while still alive, typically in cases of terminal illness. This feature is particularly beneficial for individuals who are diagnosed with a terminal condition and wish to use some of the death benefits to cover medical expenses, pay for care, or even enjoy their remaining time. This rider provides financial assistance to alleviate the burden of significant medical costs and support end-of-life care decisions.

The other options do not accurately define the accelerated death benefit rider. For instance, a feature that guarantees lifelong coverage pertains more to whole life insurance policies rather than a rider that facilitates early access to benefits. Increasing premiums over time usually refers to certain types of insurance products but is not something that describes a rider like the accelerated benefit. Lastly, a clause that limits benefits for certain conditions typically refers to exclusions or limitations, which is not related to the ability to access benefits early due to a terminal illness.