Which of these is considered to be a Living Benefit option in a life insurance policy?

• A. Accelerated death benefit
• B. Waiver of premium
• C. Disability income rider
• D. Return of premium rider

Answer: (A)

Living benefits are features you can use while you’re still alive, providing funds or protections for living expenses rather than only paying after death. The accelerat­ed death benefit fits this idea because it lets you access part of your policy’s death benefit early if you’re diagnosed with a terminal or chronic illness, helping cover medical costs or care needs now.

Waiver of premium isn’t a payout you use for living expenses; it simply suspends premium payments so the policy doesn’t lapse during disability. A disability income rider does provide ongoing income if you’re disabled, which is a form of living benefit, but in this context the classic example of a living-benefit option is the accelerated death benefit. The return of premium rider refunds premiums, which is a return of funds rather than a living-benefit payout.