Which statement about accelerated death benefit options is true?

• A. The benefit can be offered as a rider at an extra cost or maybe at no cost
• B. It is always automatically included in every policy
• C. It requires full underwriting and medical records
• D. It applies only to term policies

Answer: (A)

Accelerated death benefits let a policyowner access a portion of the death benefit early if they have a qualifying illness or need long‑term care. This feature is typically offered as a rider that can be added to a policy for an extra charge, or, in some cases, may be included at no additional cost depending on the specific policy. It isn’t automatically included in every policy because availability and cost vary by product and insurer. It also doesn’t always require full underwriting—some riders involve simplified underwriting or are included with no extra underwriting, depending on the plan. And it isn’t limited to term policies; you’ll find accelerated death benefits in many permanent life products as well.