What is an "accelerated death benefit" rider?

An accelerated death benefit rider is designed to provide a policyholder with access to a portion of their death benefit while they are still alive, usually in cases of terminal illness, chronic illness, or critical health conditions. This rider essentially allows individuals to receive financial assistance to cover medical expenses or other costs associated with their health conditions. The key function of this rider is to alleviate some of the financial burdens during a challenging time, allowing the policyholder to use the funds for treatment, care, or any necessary expenses instead of waiting until death occurs to access the full benefit.

This feature can significantly enhance the utility of a life insurance policy for policyholders facing terminal or critical illnesses, providing them with much-needed financial support during their lifetime.