Massachusetts State Life Insurance Practice Exam

What does the Accelerated Benefit Rider allow the insured to do?

1. Receive full death benefits before death

2. Withdraw a portion of the death benefit in case of terminal illness

3. Purchase additional life insurance

4. Increase premiums for extra coverage

The correct answer is: Withdraw a portion of the death benefit in case of terminal illness

The Accelerated Benefit Rider is a provision in a life insurance policy that allows the policyholder to access a portion of the death benefit while they are still alive, specifically in the event of a terminal illness. This benefit is designed to provide the insured with financial resources to cover medical expenses, living costs, or any other needs that may arise during a difficult time. This rider effectively gives the insured a way to utilize their policy's benefits earlier than the typical payout at death, which can greatly assist individuals facing serious health challenges. By receiving a portion of the death benefit, insured individuals can ease their financial burdens during a critical period in their lives, allowing for greater peace of mind. The other options do not accurately describe the function of the Accelerated Benefit Rider. The ability to access benefits in cases of chronic illness or satisfying financial needs before death directly correlates to the purpose of this rider.