Which provision allows part of a life insurance policy's death benefit to be paid while the owner is still living if diagnosed with a terminal illness?

Which provision allows part of a life insurance policy's death benefit to be paid while the owner is still living if diagnosed with a terminal illness?

• A. Waiver of premium provision
• B. Accelerated benefits provision
• C. Contingent beneficiary provision
• D. Cash surrender value provision

Answer: (B)

The accelerated benefits provision is a feature in many life insurance policies that allows the policyholder to access a portion of the death benefit while still alive, in the event of a terminal illness diagnosis. This provision is designed to provide financial support to individuals facing significant medical expenses or to improve their quality of life during difficult times. By utilizing this option, policyholders can use the funds for treatment, comfort care, or other personal needs without having to wait until death occurs. The waiver of premium provision, on the other hand, allows policyholders to skip premium payments if they become disabled, but it does not provide access to death benefits. The contingent beneficiary provision relates to individuals designated to receive benefits if the primary beneficiary cannot, but it does not pertain to accessing benefits during the policyholder's lifetime. The cash surrender value provision allows policyholders to cash out a portion of their policy, which is separate from accessing death benefits in the case of terminal illness.

The accelerated benefits provision is a feature in many life insurance policies that allows the policyholder to access a portion of the death benefit while still alive, in the event of a terminal illness diagnosis. This provision is designed to provide financial support to individuals facing significant medical expenses or to improve their quality of life during difficult times. By utilizing this option, policyholders can use the funds for treatment, comfort care, or other personal needs without having to wait until death occurs.

The waiver of premium provision, on the other hand, allows policyholders to skip premium payments if they become disabled, but it does not provide access to death benefits. The contingent beneficiary provision relates to individuals designated to receive benefits if the primary beneficiary cannot, but it does not pertain to accessing benefits during the policyholder's lifetime. The cash surrender value provision allows policyholders to cash out a portion of their policy, which is separate from accessing death benefits in the case of terminal illness.