What is the purpose of an accelerated death benefit rider?

The purpose of an accelerated death benefit rider is to allow the policyholder to access a portion of the death benefit while they are still living, under certain conditions. This rider can be particularly beneficial for individuals who are diagnosed with a terminal illness or a chronic condition that significantly affects their quality of life. By utilizing this rider, policyholders can use the funds to cover medical expenses, pay for long-term care, or fulfill other financial needs, all while they are still alive. This feature enhances the flexibility of the policy, allowing for a more strategic approach to managing financial responsibilities during difficult times.

The other options do not accurately capture the essence of the accelerated death benefit rider. For instance, increasing the death benefit over time or providing specific payouts for chronic illnesses are not the primary functions of this rider, and directly covering funeral expenses is typically managed through different policy provisions.