Life Policy ProvisionsQuestion 175 of 315
An accelerated benefit rider on a life insurance policy generally allows which of the following?
a.Receipt of all premiums paid as a refund at age 65
b.Doubling of the death benefit at age 70
c.Free withdrawal of cash value with no impact on the death benefit
d.Advance payment of a portion of the death benefit if the insured is diagnosed with a qualifying terminal or chronic illness
Explanation
An accelerated benefit (living benefit) rider lets the insured receive an advance on part of the policy's death benefit when diagnosed with a qualifying terminal, chronic, or sometimes critical illness as defined in the rider. The remaining death benefit at death is reduced accordingly.
Law Reference: Cal. Ins. Code §10295.1Practice all 315 questions free — no signup required.
Related questions on this topic
- Under a typical Accidental Death Benefit (double indemnity) rider, the additional benefit is paid only if the insured's death results from accidental bodily injury and occurs within what time frame after the accident?
- How does the waiver-of-premium rider on a life insurance policy work?
- The Guaranteed Insurability rider (GIR) primarily allows the insured to do which of the following?
- A whole life policyowner takes a policy loan against the cash value. Which of the following best describes the loan?
- An insured wants to name his 7-year-old grandson as primary beneficiary of a $500,000 policy. Which arrangement is generally the most appropriate way to ensure the proceeds are managed for the minor?
- Two years after a California life insurance policy is issued, the insurer discovers that the insured deliberately concealed a serious heart condition on the application. The insured then dies of unrelated causes. What is the insurer's remedy under the incontestability clause?
Last reviewed: · editorial process
Sen Lin, PrepPass Founder · Verified against California Life & Health Insurance License Exam · How we review
Reviewed by John Zihao Zhang — California-Licensed Life Insurance Agent (CA Dept. of Insurance License #4396095 — verify)