Which of the following allows a policyowner to take a portion of the death benefit while still alive if diagnosed with a terminal illness?

The accelerated death benefit rider allows a policyowner to access a portion of the death benefit while still alive if they are diagnosed with a terminal illness. This rider is designed to provide the policyholder with financial support during a critical time, enabling them to cover medical expenses, pay off debts, or manage other financial needs that may arise due to their illness.

This rider addresses the increasing healthcare costs often associated with terminal conditions, allowing individuals to use their life insurance in a way that benefits them before they pass away. By accessing these funds early, the policyowner can alleviate some financial burdens during a challenging period.

Other options, like the waiver of premium rider, generally allow for premiums to be waived under certain conditions, but do not provide access to death benefits while living. The guaranteed insurability rider permits the policyholder to purchase additional insurance without medical exams at specified times but does not provide early access to benefits. The cost of living rider is designed to adjust the death benefit for inflation but also doesn’t provide any living benefits. Thus, the accelerated death benefit rider is specifically tailored for situations involving terminal illnesses and allows for the pre-death access to funds that policyowners might urgently require.