What is the accelerated death benefit provision in a life insurance policy commonly known as?

The accelerated death benefit provision in a life insurance policy is commonly referred to as a Living Benefit. This feature allows policyholders to access a portion of their death benefit while they are still alive, typically in the case of a terminal illness or certain qualifying conditions.

The primary purpose of this provision is to provide financial support to the insured during times of critical illness, helping cover medical expenses or other needs that may arise as they face life-threatening health issues. By accessing these funds, the insured can alleviate some financial burdens and improve their quality of life during a challenging period.

This terminology reflects the benefit's focus on supporting living policyholders rather than solely being a posthumous payout. It highlights the policy's adaptability to meet the changing needs of the insured while they are still alive, thus enhancing the policy's overall value.