Question

All of the following are true regarding the accelerated death benefit rider, except: a These benefits do not include disability income b Accelerated death benefits have to be repaid if the insured's health improves c These benefits could be provided based on an insured qualifying as catastrophic illness, such as the need for an organ transplant d These benefits could be provided based on an insured qualifying for long-term care, if unable to perform activities of daily living

Answer 1

The accelerated death benefit rider in life insurance policies provides benefits to policyholders while they are still alive if they meet certain qualifying criteria. The correct option is a.

Step-by-step explanation:

The accelerated death benefit rider is an additional feature in life insurance policies that allows policyholders to receive a portion of their death benefit while they are still alive if they meet certain qualifying criteria. This benefit can be used to cover medical expenses or other financial needs.

All of the statements provided in the question are true except for option A, which states that these benefits do not include disability income. In fact, the accelerated death benefit rider can provide benefits for disability if the insured is unable to perform activities of daily living.

Thus, the correct answer is: These benefits do not include disability income.

The correct option is a.