Life Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 1/5
An accelerated death benefit (living benefits) 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
The accelerated death benefit rider advances a percentage of the death benefit to the insured before death, typically upon the diagnosis of a terminal illness with a limited life expectancy. The amount advanced is deducted from the death benefit ultimately paid to the beneficiary. It allows the insured to use the policy values while living, often to pay medical or care costs. The rider is also called a living benefits or living needs rider. Because the advance reduces the death benefit, the beneficiary receives less at death.
Why the other options are wrong
- The benefit is tied to a terminal illness diagnosis, not to reaching a specific age such as 100.
- An interest-free loan is not what this rider provides; the rider is an advance of the death benefit, not a loan.
- The rider reduces the remaining death benefit; it does not double the amount payable at claim time.
Memory hook
Terminal illness plus ADB = the death benefit comes early, in part, when it is needed most.