An Accelerated Death Benefit in Pennsylvania must be at least what percentage of the total death benefit?

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Prepare for the Pennsylvania Life Insurance Exam. Use flashcards and multiple-choice questions, each with hints and explanations. Get ready for your certification!

Multiple Choice

An Accelerated Death Benefit in Pennsylvania must be at least what percentage of the total death benefit?

Explanation:
An Accelerated Death Benefit lets a policyowner access part of the death benefit early when a qualifying illness is diagnosed. In Pennsylvania, the rule requires that the portion that can be accelerated is at least 25% of the total death benefit. This minimum ensures the insured can obtain meaningful funds while still preserving some death benefit for beneficiaries. So the correct minimum is 25%. The other options don’t reflect the required floor—10% would be below what Pennsylvania sets, while 50% or 75% are higher amounts but not the mandated minimum.

An Accelerated Death Benefit lets a policyowner access part of the death benefit early when a qualifying illness is diagnosed. In Pennsylvania, the rule requires that the portion that can be accelerated is at least 25% of the total death benefit. This minimum ensures the insured can obtain meaningful funds while still preserving some death benefit for beneficiaries. So the correct minimum is 25%. The other options don’t reflect the required floor—10% would be below what Pennsylvania sets, while 50% or 75% are higher amounts but not the mandated minimum.

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