Policy Riders, Provisions, Options, and Exclusions
What does an accelerated death benefit provide when its qualifying conditions are met?
Answer and explanation
Answer: C. An accelerated death benefit prepays part or all of the death benefit while the insured is alive after a qualifying terminal, specified-disease, chronic, or long-term-care condition under the rider.Source: Texas Department of Insurance — Life Insurance Guide — Customizing your policy > Accelerated death benefit option
More policy riders, provisions, options, and exclusions questions
- An insured dies during a Texas policy's two-year contestable period. The insurer discovers a material false application statement. What may the insurer do?
- An insured dies on day 20 of a policy's 31-day grace period with an overdue premium. What benefit does the beneficiary receive?
- An insured exercises a guaranteed insurability option after adopting a child. Which premium basis generally applies to the newly purchased coverage?
- An insured understated her age by 5 years on the application. At death, the insurer discovers the misstatement. How does the insurer handle the claim?
- An insured wants a benefit that supplies income after a qualifying total disability rather than merely waiving policy charges. Which rider most directly fits?
- An insured whose policy carries a standard aviation exclusion dies as a fare-paying passenger on a scheduled commercial airline. What does the insurer ordinarily pay?
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