Life Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
An accelerated death benefit (living needs) provision in a life insurance policy allows the insured to:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
An accelerated death benefit provision permits the insured to receive a percentage of the death benefit in advance while living, generally when diagnosed with a terminal illness with a limited life expectancy (or, under some versions, a specified critical or chronic illness). The amount paid early reduces the death benefit paid to the beneficiary later. This living-benefit feature is covered in objective LIFE-III.1e.
Why the other options are wrong
- B) The benefit is triggered by qualifying illness, not by reaching age 65.
- C) The accelerated amount is a benefit payment, not an interest-free loan, and it reduces the remaining death benefit.
- D) The provision does not convert the policy; a long-term care rider is a separate product feature.
Memory hook
Accelerated death benefit = draw on the death benefit early when time is short.