What do accelerated (living) benefits allow a terminally ill policyholder to do?

Accelerated (living) benefits provide terminally ill policyholders with the ability to access a portion of the death benefit while still alive. This feature is designed to offer financial assistance during a time of significant medical and emotional strain, allowing individuals to use the funds for medical expenses, treatment, or any other necessary costs related to their condition.

This option is particularly valuable because it addresses the immediate financial needs of a policyholder facing a terminal illness, enabling them to make arrangements or fulfill wishes while they are still able. Accessing part of the death benefit can significantly relieve financial burdens during a challenging time, ensuring that the terminally ill individual can focus on their health and personal matters without the added stress of financial concerns.

In contrast, other options, such as withdrawing cash value without penalty or converting the policy type, do not specifically relate to the benefits afforded to terminally ill individuals. Changing beneficiaries does not provide immediate financial assistance to the policyholder, as it involves adjusting who receives the death benefit rather than accessing funds for current needs. Thus, receiving part of the death benefit before death aptly captures the essential purpose of accelerated benefits.