Under an accelerated death benefit rider on a Michigan life policy, payment of benefits is typically conditioned on:

Why A is correct

Michigan's living benefit framework at M.C.L. 500.3928 and M.C.L. 500.3949 permits acceleration of the death benefit upon qualifying conditions of the insured — most characteristically a terminal illness establishing a limited life expectancy. The trigger is the insured's medical condition, documented through certification, not any event in the policy's financial life. This is what makes the benefit a living benefit: the qualifying event happens while the insured is alive.

Why the other options are wrong

• B) Lapse for non-payment ends or impairs coverage; it is the opposite of a condition that unlocks an accelerated benefit.
• C) Filing a death claim is the trigger for ordinary death benefits, not for living benefits paid while the insured is alive.
• D) Reaching retirement age is not the qualifying condition; acceleration depends on the insured's medical condition, not age milestones.

Memory hook

Terminal certification unlocks the advance.