Life Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
An accelerated death benefit (living benefits) provision pays the insured:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
An accelerated death benefit, also called a living benefit, allows the insured to receive part of the death benefit before death, generally when diagnosed with a terminal illness with a limited life expectancy. The amount advanced reduces the face amount payable to the beneficiary. California recognizes these benefits for terminal and chronic illness under CIC Section 10295 and following, and the availability of such benefits may affect the insured's eligibility for government programs, which the agent should disclose.
Why the other options are wrong
- B) Accelerated benefits are triggered by terminal or chronic illness, not by a two-year disability waiting period.
- C) Dividends are a separate participating policy feature and are not guaranteed by an accelerated benefit provision.
- D) The provision advances death benefit money, not a refund of premiums after age 65.
Memory hook
Living benefits put the death benefit to work while you're still here.