South Carolina Life and Health Practice Exam 2025 – 400 Free Practice Questions to Pass the Exam

The accelerated death benefit is indeed a Living Benefit option in a life insurance policy. This type of benefit allows the policyholder to access a portion of the death benefit while they are still alive, typically in the event of a terminal illness or other qualifying conditions. This feature enables individuals to use the funds for medical expenses, living costs, or any other financial needs during a difficult time, providing critical support when it is most needed.

Living benefits like the accelerated death benefit serve to enhance the value of life insurance by providing immediate assistance and financial relief rather than only offering a payout upon death. This aligns with the broader purpose of life insurance, which is to support policyholders and their beneficiaries during significant life events. Other options such as the death benefit payout occur only upon the policyholder's death, and interest earnings on cash value pertain to the growth of the policy over time rather than immediate access to funds. A guaranteed refund option refers to a feature sometimes found in certain life insurance policies that guarantees a return of premium if certain conditions are met, which doesn't fit the criteria of a Living Benefit.