Life Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
An accelerated death benefit (living needs) rider allows a terminally ill 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 rider lets a terminally ill insured collect a portion of the death benefit before death, typically as a lump sum or in periodic payments, to cover medical costs or personal needs. The accelerated amount is deducted from the death benefit, so beneficiaries receive less at death. Some versions also respond to chronic or critical illness conditions. Because the rider reduces the face amount, the insured must understand the impact on remaining coverage.
Why the other options are wrong
- B) The advance is a payment of part of the benefit, not a no-repayment loan of the entire face amount.
- C) The insurer does not double the benefit; the accelerated amount is a portion, not the full benefit plus a match.
- D) The death benefit is reduced by the accelerated amount; it is not increased afterward.
Memory hook
Living needs rider: cash the death benefit early, and the survivors get whatever is left. Borrowing from your own tomorrow.