New Jersey Life Insurance Exam Practice Question
What is the purpose of the Accelerated Death Benefit Rider?
Correct Answer: B
Rationale: The Accelerated Death Benefit Rider allows for early payment of the death benefit to terminally ill insured individuals, providing them with financial support during a critical time.
Option A is incorrect because the rider does not increase the death benefit; instead, it pays out a portion early. Option C is misleading; while tax implications may exist, the rider's primary function is not to reduce estate tax liability. Option D is also wrong, as the rider does not adjust the death benefit for inflation; it simply allows access to funds earlier than the policy's standard terms.
Unlock All Questions
Subscribe to Premium for full access to all practice questions, detailed rationales, and performance tracking.
Subscribe Now