Life Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 1/5
An accelerated death benefit rider allows an insured who is diagnosed with a terminal illness to:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
An accelerated death benefit (living needs) rider permits an insured diagnosed with a terminal illness to draw down a portion of the death benefit while alive, often as a lump sum or periodic payments. The death benefit payable to the beneficiary at death is reduced by the amount advanced, and interest or fees may apply. This provides funds for medical care or final expenses when they are needed most.
Why the other options are wrong
- B) The accelerated payment reduces the remaining death benefit; the full benefit is not paid on top of the cash value.
- C) The rider does not double the benefit; it advances part of the existing benefit early.
- D) The rider is not an annuity conversion feature.
Memory hook
Accelerated death benefit = spend part of your life insurance while you are still alive to pay for the end. Benefit minus advance.