How does the Accelerated Benefit provision affect the benefits paid to the beneficiary?

The Accelerated Benefit provision allows an insured individual who is diagnosed with a terminal illness or certain critical conditions to receive a portion of their life insurance death benefit while they are still alive. This provision is designed to provide financial assistance when it is most needed, such as covering medical expenses or other financial burdens associated with end-of-life care.

When a policyholder takes advantage of this provision, the amount they receive as an accelerated benefit is subtracted from the overall death benefit that will eventually be paid to the beneficiary upon the policyholder's death. Consequently, since the insured is accessing funds from the death benefit early, this will reduce the total amount that the beneficiary will receive upon the policyholder's passing. Thus, it ultimately leads to a decrease in the benefits available to the beneficiary when the policyholder dies, which is why this option accurately reflects the impact of the Accelerated Benefit provision.