Florida 2-14 Life and Annuity Practice Test

Unlock all questions

This demo includes only 20 questions. Upgrade to access hundreds of questions, flashcards, exam simulations, and disable ads.

Full question bankExam simulationsFlashcards

From $12.50Unlock all

Session length

1 / 20

Define 'living benefits' and name a common rider that provides them.

Living benefits allow access to part of the death benefit during the insured's lifetime; common rider is Accelerated Death Benefit.

Living benefits are features that let you access a portion of the policy’s death benefit while you’re still alive, usually if you’re diagnosed with a qualifying illness such as terminal, chronic, or critical illness. This can help with medical costs, long-term care, or other expenses without having to wait for death.

The common rider that provides this is the Accelerated Death Benefit rider. It lets you receive an early portion of the death benefit when you have a qualifying illness, and the amount received reduces the death benefit payable later. This rider is the classic way living benefits are offered in many life insurance policies.

Living benefits increase the death benefit at maturity; common rider is Cost of Insurance rider.

Living benefits are discounts on premiums; common rider is Waiver of Premium rider.

Living benefits refer to beneficiary designations; common rider is Term rider.