Which of the following statements about accelerated death benefits riders is (are)true?
I.Under a terminal illness rider,after a partial payment is made to the insured,there is a reduction in the face amount of insurance,cash value,and premiums.
II.Benefits under a long-term care rider are for home health care only.

Question

Quizplus · Accepted Answer

Only statement I is true. A terminal illness rider allows for a partial payment of the death benefit if the insured is diagnosed with a terminal illness and has a life expectancy of 6-12 months. After the payment is made, there may be a reduction in the face amount of insurance, cash value, and premiums. Statement II is false as benefits under a long-term care rider may also cover nursing home care and adult day care, not just home health care.

Which of the Following Statements About Accelerated Death Benefits Riders