100k views
4 votes
The Accelerated Death Benefit provision in a life insurance policy is also known as a(n)

A.1035 exchange
B.Inter vivos gift
C.Non-forfeiture option
D.Living Benefit

User Cchampion
by
8.3k points

1 Answer

0 votes

Final answer:

The correct answer to what an Accelerated Death Benefit provision in a life insurance policy is known as is 'D. Living Benefit'. This allows policyholders access to funds under specific conditions, and is available in policies with a cash value accumulation.

Step-by-step explanation:

The Accelerated Death Benefit provision in a life insurance policy is best known as a Living Benefit. This feature allows the policyholder to receive a portion of the death benefit while they are still alive, under certain circumstances such as a terminal or chronic illness. The correct answer to the provided question is 'D. Living Benefit'.

Cash-value life insurance policies, also known as whole life insurance policies, not only provide a death benefit but also accumulate cash value over time.

This accumulated cash can act as a financial account which the policyholder can use for various purposes, including taking out loans or making withdrawals.

User David Glick
by
7.5k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.