Which rider pays a portion of the policy due to terminal illness?

Which rider pays a portion of the policy due to terminal illness?

• A. Long Term Care Rider
• B. Living Needs Rider
• C. Options
• D. Accelerated Benefit

Answer: (B)

When a life insurance policy offers early access to funds, it’s usually because of an accelerated benefit feature. This rider lets the insured receive a portion of the death benefit if diagnosed with a terminal illness, providing money now to help with medical costs or living expenses while still alive. That early payout reduces the death benefit that would be paid to beneficiaries later. The rider that specifically enables this terminal-illness early payout is the Accelerated Benefit Rider. The Long Term Care Rider is aimed at help with long-term care needs, not the terminal-illness acceleration itself. The Living Needs Rider typically covers other living expenses under certain conditions, but the standard mechanism for terminal illness is the Accelerated Benefit Rider. The option labeled as “Options” does not describe this living-needs acceleration.

When a life insurance policy offers early access to funds, it’s usually because of an accelerated benefit feature. This rider lets the insured receive a portion of the death benefit if diagnosed with a terminal illness, providing money now to help with medical costs or living expenses while still alive. That early payout reduces the death benefit that would be paid to beneficiaries later.

The rider that specifically enables this terminal-illness early payout is the Accelerated Benefit Rider. The Long Term Care Rider is aimed at help with long-term care needs, not the terminal-illness acceleration itself. The Living Needs Rider typically covers other living expenses under certain conditions, but the standard mechanism for terminal illness is the Accelerated Benefit Rider. The option labeled as “Options” does not describe this living-needs acceleration.