What does the "accelerated death benefit rider" allow policyholders to do?

The accelerated death benefit rider is a provision in some life insurance policies that permits policyholders to access a portion of their death benefit while they are still living, typically under specific circumstances such as a terminal illness diagnosis. This feature provides financial support when the policyholder may face high medical expenses or other costs associated with their condition. The rider essentially allows the insured to use part of their life insurance benefit in advance, helping to alleviate financial burden during a challenging time.

The other options do not accurately reflect the function of the accelerated death benefit rider. For example, increasing coverage limits, canceling the policy without penalty, or reducing premium payments do not pertain to the ability to access funds from a death benefit while alive, highlighting the distinct role of this rider in providing immediate financial assistance.