What are "accelerated death benefits"?

Accelerated death benefits refer to a feature in certain life insurance policies that allows the policyholder to receive a portion of the death benefit while still alive, specifically if they are diagnosed with a terminal illness. This provision is designed to provide financial assistance to individuals facing significant medical expenses or end-of-life costs, allowing them to use these funds for treatment, hospice care, or other related needs.

This type of benefit can relieve some of the financial burdens associated with terminal illnesses, giving policyholders more flexibility to manage their care and final arrangements. Unlike the other options, which either refer to post-death benefits or do not align with the specific function of accelerated death benefits, this choice accurately captures the essence of the feature, emphasizing its role in providing early access to benefits under certain health circumstances.