Pennsylvania Life and Health Insurance Exam Practice Question
In Pennsylvania, when an Accelerated Death Benefit is activated, the death benefit will be
Correct Answer: B
Rationale: When an Accelerated Death Benefit is activated, the amount paid out reduces the total death benefit available to beneficiaries. This means that the death benefit is diminished by the amount of the accelerated payment, which is why option B is accurate.
Option A is incorrect because the benefit paid does not increase the total death benefit; it subtracts from it. Option C is not valid since the death benefit cannot remain unchanged after an accelerated payment is made. Lastly, option D is misleading; while the benefit is reduced, it is not entirely eliminated, as there may still be a remaining amount payable upon death.
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