What is an accelerated death benefit rider?

An accelerated death benefit rider is designed to provide policyholders with the option to receive a portion of their life insurance policy's death benefit while they are still living, typically in the event of a terminal illness or a certain critical health condition. This provision allows for financial support when it is most needed, enabling individuals to use those funds for medical expenses, long-term care, or other related costs.

This benefit can be invaluable, offering policyholders a way to alleviate financial burdens during challenging times, rather than leaving the benefits solely to be paid upon their death. The concept behind this provision is to enhance the utility of the life insurance policy by allowing the insured to access some of the benefits before their passing, thus providing peace of mind and financial security.

The other options either pertain to different aspects of life insurance or describe provisions that do not align with the specifics of accelerated death benefits, which focus explicitly on accessing death benefits prior to death under qualifying circumstances.