Answer:
Life insurance death benefits that can be accessed tax-free when the insured is still alive are called accelerated death benefit.
Step-by-step explanation:
The accelerated death benefit is a life insurance policy where benefits can be retrieved tax free in case the insured is still alive. This is usually accessed to cover the cost of care when one has a terminal illness.
The accelerated death benefit is mostly included in the life insurance policy with no extra cost. It is also known as the terminal illness benefit. The life insurance company requires a proof of life expectancy to approve this. It can vary from 6 months to 24 months depending on the provider.