Which is a Living Benefit option in a life policy?

• A. Waiver of premium
• B. Death benefit rider
• C. Accelerated death benefit
• D. Cash value rider

Answer: (C)

Living benefits are features of a life policy that can be used while the insured is still alive to help with serious health issues or expenses. The accelerated death benefit is a rider that lets the policyholder receive a portion of the death benefit early when diagnosed with a qualifying illness or needing long-term care. The funds can be used for medical costs, caregiving, or other needs, and the remaining death benefit is reduced accordingly. This direct access to money during life is why it’s the best example of a living-benefit option. Other features either come into play after death (additional death benefits), build cash value, or simply suspend premiums if disability occurs (waiver of premium), which isn’t the same as access to a portion of the death benefit during life.