Question

Under which of the following circumstances would an insurer pay accelerated benefits?

A. An insured is looking for a way to put her daughter through college.
B. A couple wants to build a house and would like to make a larger down payment.
C. An insured is diagnosed with cancer and needs help paying for her medical treatment.
D. A couple is nearing retirement and needs a steady stream of income.

Answer 1

An insurer would pay accelerated benefits when an insured is diagnosed with cancer and needs help paying for medical treatment.

Step-by-step explanation:

Under the circumstances described, an insurer would pay accelerated benefits when an insured is diagnosed with cancer and needs help paying for medical treatment. In this situation, the insured would be eligible to receive a portion of their life insurance benefit before their death to cover the costs of their medical treatment.

Accelerated benefits are a feature of some life insurance policies that allow policyholders to receive a portion of their death benefit early if they meet certain criteria, such as being diagnosed with a terminal illness. These benefits can be used to cover medical expenses or other financial needs during the insured's lifetime.

In this case, the insured has been diagnosed with cancer and needs help paying for medical treatment, making them eligible to receive accelerated benefits from their life insurance policy.