CARD Q049
An insured meets a policy’s terminal-illness trigger and receives part of the death benefit while living. What generally happens to the remaining death benefit?
- Only the policy’s cash value remains payable
- The accelerated amount is added to the original death benefit
- The full original death benefit remains payable
- It is reduced according to the acceleration terms
It is reduced according to the acceleration terms
An accelerated benefit advances part of the policy’s death benefit. Charges, interest, and other adjustments can also apply.
Why each choice is right or wrong
A. Only the policy’s cash value remains payable
Incorrect. Acceleration does not generally redefine the remaining benefit as cash value alone.
B. The accelerated amount is added to the original death benefit
Incorrect. The accelerated amount is paid early and normally reduces rather than increases the remaining benefit.
C. The full original death benefit remains payable
Incorrect. Receiving part early normally reduces what remains under the rider terms.
D. It is reduced according to the acceleration terms
Correct. An accelerated benefit advances part of the policy’s death benefit. Charges, interest, and other adjustments can also apply.
Review the related terms
Use these lessons to revisit the concepts and try additional practice questions.