Which provision allows life insurance benefits to be paid early to terminally ill policyholders?

The provision that allows life insurance benefits to be paid early to terminally ill policyholders is known as the accelerated death benefit. This feature is designed to provide financial support to policyholders when they are diagnosed with a terminal illness, enabling them to access a portion of their life insurance death benefit while they are still alive. This can help cover medical expenses, pay for end-of-life care, or fulfill other financial needs during a difficult time.

The accelerated death benefit serves to alleviate financial burdens when time is of the essence, allowing policyholders to utilize their life insurance coverage in a meaningful way rather than waiting until after their passing.

In contrast, term riders, disability riders, and contingent beneficiary clauses serve different purposes. A term rider typically provides additional temporary coverage for a specific period, a disability rider offers benefits in the case of the policyholder's disability, and a contingent beneficiary clause designates an alternative recipient of the policy benefits if the primary beneficiary is not able to receive them. Thus, these options do not address the specific need for early access to life insurance benefits due to terminal illness.