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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
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1 Answer

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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
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