What does an accelerated death benefit provision allow policyholders to do?

An accelerated death benefit provision is designed to provide financial support to policyholders who are diagnosed with a terminal illness. This provision allows them to access a portion of the death benefit while they are still alive, enabling them to use those funds for medical expenses, living costs, or other needs that may arise during a critical time. This feature recognizes the financial burden that can accompany a terminal illness and allows individuals and their families to better manage those challenges.

By contrast, accessing the entire death benefit at once does not typically align with the nature of an accelerated death benefit, as this provision focuses on providing a subset of the total amount for immediate needs. Similarly, transferring the death benefit to another policy is not a function of the accelerated death benefit but rather pertains to policy management and ownership transfer. Lastly, enhancing policy coverage is not related to accessing benefits due to illness; instead, it involves increasing the benefits or riders under an existing policy, which is separate from the intent behind an accelerated death benefit.