Which is an example of a life insurance rider that provides early access to the death benefit under certain conditions?

• A. Accelerated death benefit rider
• B. Waiver of premium rider
• C. Guaranteed issue rider
• D. Term rider

Answer: (A)

This question is about living benefits that let you access life insurance proceeds before death. An Accelerated Death Benefit Rider allows the policyowner to receive part of the death benefit early when the insured meets certain conditions, commonly a terminal or chronic illness or the need for long-term care. This is exactly what the question describes: getting access to funds while alive under specific circumstances to cover medical or care costs, rather than waiting for death.

The other riders don’t provide this feature. A waiver of premium rider simply suspends premiums if the insured becomes disabled, with no advance of death benefits. A guaranteed issue rider offers coverage without medical underwriting but does not accelerate the death benefit. A term rider adds temporary term coverage and likewise does not provide early payout of the death benefit.