New York State Life Insurance Exam Questions Practice Question
What is the purpose of the Accelerated Death Benefit Rider?
Correct Answer: B
Rationale: The Accelerated Death Benefit Rider allows terminally ill insured individuals to access a portion of their death benefit while still alive, providing financial support during a critical time.
Option A is incorrect because this rider does not increase the death benefit but rather allows for early access to it. Option C misrepresents the rider's purpose; it does not specifically address tax liabilities related to the insured's estate. Option D is also inaccurate, as the rider does not adjust benefits for inflation but rather facilitates early payment due to terminal illness.
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