Final answer:
The Accelerated death benefit is a provision in a life insurance policy that allows an insured individual to receive a portion of the death benefit while still living, if they are diagnosed with a terminal illness or meet other specific health criteria. The correct option is (D)
Step-by-step explanation:
The provision that will pay a portion of the death benefit prior to the insured's death due to a serious illness is known as the Accelerated death benefit. This feature is typically added to a life insurance policy and allows prepayment of some of the death benefit when the insured is diagnosed with a terminal illness, a specific medical condition, or if the insured cannot perform certain activities of daily living due to a chronic illness. As opposed to cash surrender or nonforfeiture options, which relate to the cash value component of a policy, the accelerated death benefit is specifically designed to provide financial assistance during a difficult time when facing serious health issues. The return of premium provision is different; it entails the insurer refunding premiums paid if the insured lives past the term of the policy and it does not expire or pay out a death benefit.