Living Needs Rider is a rider that provides accelerated death benefits when the insured is terminally ill.

Living Needs Rider is a rider that provides accelerated death benefits when the insured is terminally ill.

• A. Long-Term Care Rider
• B. Living Needs Rider
• C. Waiver of Premium Rider
• D. Term Rider

Answer: (B)

Accelerated death benefits let a life insurance policy owner access part of the death benefit before death when the insured is terminally ill. The Living Needs Rider is specifically designed to provide those accelerated benefits for a terminal illness, helping cover medical costs or caregiving expenses. When benefits are advanced, they reduce the death benefit that would be paid later, and many policies treat these advances as tax-free if the illness qualifies under the policy terms. The other riders serve different purposes: a Long-Term Care Rider pays for long-term care needs, a Waiver of Premium Rider stops premiums if the insured becomes disabled, and a Term Rider adds a temporary term-life coverage. This rider’s purpose is to provide the accelerated payout for terminal illness, so it matches the statement.

Accelerated death benefits let a life insurance policy owner access part of the death benefit before death when the insured is terminally ill. The Living Needs Rider is specifically designed to provide those accelerated benefits for a terminal illness, helping cover medical costs or caregiving expenses. When benefits are advanced, they reduce the death benefit that would be paid later, and many policies treat these advances as tax-free if the illness qualifies under the policy terms. The other riders serve different purposes: a Long-Term Care Rider pays for long-term care needs, a Waiver of Premium Rider stops premiums if the insured becomes disabled, and a Term Rider adds a temporary term-life coverage. This rider’s purpose is to provide the accelerated payout for terminal illness, so it matches the statement.