L&HIllinoismedium
An Illinois life policyowner with a terminal-illness rider wants to accelerate part of the death benefit. Under 50 Ill. Adm. Code Part 1407, which statement is most accurate about the accelerated death benefit (ADB)?
AIt is paid only after death, never to the insured
It allows the insured to receive a portion of the death benefit during life upon a qualifying triggering event such as terminal illness
CIt increases the death benefit by the amount of acceleration
DIt requires court approval before payment
Why this is the answer
Illinois's accelerated-benefits framework permits a life insurance policy or rider to advance a portion of the death benefit to the insured during their lifetime when a qualifying event occurs — most commonly terminal illness, chronic illness, or a specified critical condition. The amount accelerated, plus any administrative discount, reduces the remaining death benefit payable to the beneficiary upon death.
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