Which rider allows a partial death benefit for terminal illness?

Which rider allows a partial death benefit for terminal illness?

• A. Accidental Death
• B. Chronic Illness Rider
• C. Disability Waiver
• D. Accelerated Death Benefit

Answer: (D)

An accelerated death benefit rider lets you access part of the life insurance death benefit early if you’re diagnosed with a terminal illness. This living benefit is designed to provide funds for medical expenses, long-term care, or other needs while you’re alive. Typically, you can receive a portion of the death benefit, and the amount paid is subtracted from the death benefit remaining on the policy. Qualification usually requires a physician’s certification and a life expectancy usually measured in months. Other riders serve different purposes. An accidental death rider pays only if death results from an accident. A chronic illness rider can accelerate benefits for a chronic condition under certain criteria, often related to inability to perform daily activities, not necessarily terminal illness. A disability waiver is for waiving premium payments if you become disabled, not for accelerating the death benefit. So, the rider that allows a partial death benefit for terminal illness is the accelerated death benefit.

An accelerated death benefit rider lets you access part of the life insurance death benefit early if you’re diagnosed with a terminal illness. This living benefit is designed to provide funds for medical expenses, long-term care, or other needs while you’re alive. Typically, you can receive a portion of the death benefit, and the amount paid is subtracted from the death benefit remaining on the policy. Qualification usually requires a physician’s certification and a life expectancy usually measured in months.

Other riders serve different purposes. An accidental death rider pays only if death results from an accident. A chronic illness rider can accelerate benefits for a chronic condition under certain criteria, often related to inability to perform daily activities, not necessarily terminal illness. A disability waiver is for waiving premium payments if you become disabled, not for accelerating the death benefit.

So, the rider that allows a partial death benefit for terminal illness is the accelerated death benefit.