What are accelerated death benefits riders designed to provide?

Accelerated death benefits riders are designed to provide early payment of benefits when the insured is diagnosed with a terminal illness. This option allows policyholders to access a portion of their life insurance benefits while still alive, typically to cover medical expenses or other costs related to their terminal condition. The intent of this rider is to help alleviate financial burdens during a difficult time, giving individuals the opportunity to use the funds as they see fit before their passing.

In contrast, full policy value upon death refers to the standard payout of a life insurance policy but does not account for any early withdrawals or benefits. Additional coverage for survivors after death implies benefits beyond the original policy, which isn’t the focus of accelerated death benefits. Discounted premiums for long-term policyholders addresses a different aspect of insurance pricing and does not relate to the purpose of accelerated benefits. Thus, the core function of accelerated death benefits riders is specifically aimed at providing terminally ill insured individuals with timely financial support.