Texas General Lines — Life, Accident, Health and HMOLife InsuranceMedium
A life insurance policyowner is concerned that if they become terminally ill, they will incur significant medical expenses and may wish to access a portion of their policy's death benefit while still alive. Which rider would address this concern?
- AAccidental Death and Dismemberment Rider
- BGuaranteed Insurability Rider
- CWaiver of Premium Rider
- DAccelerated (Living) Benefits Rider
Show answer & explanationAnswer & explanation
Correct answer: D. Accelerated (Living) Benefits Rider
The Accelerated (Living) Benefits Rider allows the policyholder to receive a portion of their death benefit while still alive if they are diagnosed with a terminal illness or other qualifying condition, helping to cover medical costs or other expenses.
Why the other options are wrong
- A. This rider pays an additional sum for accidental death or loss of limbs/sight.
- B. This rider allows for future coverage increases without medical underwriting.
- C. This rider waives premium payments if the insured becomes totally disabled.
Accelerated (Living) Benefits Rider
A life insurance rider that allows the policyholder to receive a portion of the policy's death benefit while still alive, typically upon diagnosis of a terminal illness, critical illness, or long-term care need.
- Access to death benefit while living
- Triggered by specific health conditions (terminal, critical, LTC)
- Reduces the death benefit paid to beneficiaries
- Helps cover medical/living expenses
Memory trick: Living benefits are your 'early cash' for tough 'health' times.