Accelerated Death Benefits Rider allows early payment of a portion of the face amount before death when the insured is terminally ill.

Accelerated Death Benefits Rider allows early payment of a portion of the face amount before death when the insured is terminally ill.

• A. Waiver of premium rider
• B. Return of premiums
• C. Early payment of a portion of the face amount when terminally ill
• D. Extended term rider

Answer: (C)

The idea being tested is how Accelerated Death Benefits work. This rider lets the insured access part of the death benefit before death if they are terminally ill, providing funds to cover medical or living expenses while still alive. The amount taken is typically paid out and then reduces the death benefit that would later be paid to beneficiaries. This option is different from a waiver of premium, which locks in policy coverage when the insured becomes disabled and doesn’t involve taking an early payout of the death benefit. It’s also not about returning premiums already paid or about converting the policy to a term policy via an extended term rider. The description matches the feature of taking an early portion of the face amount due to terminal illness.

The idea being tested is how Accelerated Death Benefits work. This rider lets the insured access part of the death benefit before death if they are terminally ill, providing funds to cover medical or living expenses while still alive. The amount taken is typically paid out and then reduces the death benefit that would later be paid to beneficiaries.

This option is different from a waiver of premium, which locks in policy coverage when the insured becomes disabled and doesn’t involve taking an early payout of the death benefit. It’s also not about returning premiums already paid or about converting the policy to a term policy via an extended term rider. The description matches the feature of taking an early portion of the face amount due to terminal illness.