Accelerated Death Benefits: Two riders provide Accelerated Death Benefits: Living Needs Rider and Long-Term Care Rider.

Accelerated Death Benefits: Two riders provide Accelerated Death Benefits: Living Needs Rider and Long-Term Care Rider.

• A. Accelerated benefits are available only on whole life policies
• B. Two riders provide Accelerated Death Benefits: Living Needs Rider and Long-Term Care Rider
• C. Accelerated benefits do not affect the death benefit
• D. Accelerated benefits require employer approval

Answer: (B)

Accelerated death benefits let a policyowner access part of the death benefit early when they have a qualifying need, such as long-term care or other serious health conditions. Two common riders that provide these funds are the Living Needs Rider and the Long-Term Care Rider. The Living Needs Rider typically allows an advance to cover ongoing living or medical expenses, while the Long-Term Care Rider specifically provides funds to help pay for long-term care costs. When you take accelerated benefits, the amount paid is usually deducted from the death benefit that would be paid later, reducing the death benefit (and potentially affecting other policy values). These benefits aren’t about employer approval, and they aren’t limited to only whole life policies, so the statement that only whole life policies offer this is inaccurate.

Accelerated death benefits let a policyowner access part of the death benefit early when they have a qualifying need, such as long-term care or other serious health conditions. Two common riders that provide these funds are the Living Needs Rider and the Long-Term Care Rider. The Living Needs Rider typically allows an advance to cover ongoing living or medical expenses, while the Long-Term Care Rider specifically provides funds to help pay for long-term care costs. When you take accelerated benefits, the amount paid is usually deducted from the death benefit that would be paid later, reducing the death benefit (and potentially affecting other policy values). These benefits aren’t about employer approval, and they aren’t limited to only whole life policies, so the statement that only whole life policies offer this is inaccurate.