Final answer:
An accelerated death benefit rider is an additional feature that can be added to a life insurance policy. The correct answer is B.
Step-by-step explanation:
An accelerated death benefit rider is an additional feature that can be added to a life insurance policy. It allows the policyholder to receive a portion of the death benefit while they are still alive if they meet certain qualifying conditions.
Now, let's go through each option:
- A: This statement is true. The benefits of an accelerated death benefit rider do not include disability income. Disability income is a separate type of insurance that provides income replacement if the insured becomes disabled and is unable to work.
- B: This statement is false. Accelerated death benefits do not have to be repaid if the insured's health improves. Once the accelerated death benefit is paid out, it does not need to be repaid.
- C: This statement is true. Accelerated death benefits can be provided based on an insured qualifying for long-term care if they are unable to perform activities of daily living. This means that if the insured requires assistance with basic daily tasks like eating, bathing, or dressing, they may be eligible for accelerated death benefits.
- D: This statement is true. Accelerated death benefits can also be provided based on an insured qualifying as a catastrophic illness, such as the need for an organ transplant. In cases where the insured is diagnosed with a severe illness or condition, they may be eligible to receive accelerated death benefits.
In conclusion, the only incorrect statement is option B. Accelerated death benefits do not have to be repaid if the insured's health improves.