Long-Term Care✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
What is a key difference between an accelerated death benefit for chronic illness and a standalone long-term care policy?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
An accelerated death benefit is a life insurance feature that pays a portion of the death benefit — lump sum or periodic — when the insured is chronically ill, while a standalone LTC policy is a separate accident and health contract that pays for covered long-term care services. Understanding this structural difference is essential when advising clients. LIFE-I.C.2.21 anchors the ADB-versus-LTC distinction.
Why the other options are wrong
- B) ADBs are limited to the life policy's face amount, not unlimited cost coverage.
- C) An LTC policy does not accelerate a life death benefit; the rider form is what accelerates it.
- D) ADB availability depends on the policy and qualifying condition, not on exceeding age 85.
Memory hook
ADB lives inside a life policy and spends the death benefit; standalone LTC is its own contract for care.