Question

Which of the following statements is CORRECT about accelerated death benefits?

A.The full face amount is available as an accelerated benefit
B.Those on Social Security disability automatically qualify for this benefit
C.This provision is usually provided with an increase in premium
D.Must have a terminal illness to qualify

Answer 1

The correct answer is option D. Must have a terminal illness to qualify

Step-by-step explanation:

The correct statement regarding accelerated death benefits is that one must have a terminal illness to qualify. These benefits allow policyholders to receive a portion of their life insurance death benefit while they are still alive under certain conditions, such as having a terminal illness. This option can provide financial support during a difficult time. However, it's not true that the full face amount is always available as an accelerated benefit, as the amount available can vary depending on the policy's terms.

Also, qualifying for these benefits is not automatic for those on Social Security disability; one must meet specific criteria set by the insurance policy. Lastly, this provision is generally included in the policy without an increase in premium.