Which of these is NOT a characteristic of the Accelerated Death Benefit option?

• A. It requires medical documentation but not proof of insurability.
• B. It provides a faster access to a portion of the death benefit upon qualifying events.
• C. The benefit can be offered as a rider at a specific extra cost or may be at no cost.
• D. It is mandatory for all life insurance policies.

Answer: (C)

Accelerated Death Benefit is an optional feature that lets a policyowner access part of the death benefit early when a qualifying event occurs, such as a terminal or chronic illness. It is not required on every policy. Many policies offer this as a rider for an extra premium, while others may include it at no additional cost. Access is quicker once the qualifying condition is documented, but the amount drawn typically reduces the death benefit remaining on the policy. Since not all policies include this feature by default and it isn’t mandated for every policy, the statement that it is mandatory for all life insurance policies is not a characteristic of Accelerated Death Benefit.