New Jersey Life Producer Practice Exam 2026 – Your Complete All-in-One Guide to Exam Success!

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What is an accelerated death benefit?

A provision allowing the insured to receive a portion of the death benefit while alive.

An accelerated death benefit is a provision in a life insurance policy that allows the insured to access a portion of the death benefit while they are still alive, typically in the case of a terminal illness, chronic illness, or other specified conditions. This feature provides financial support during a challenging time, enabling the insured to cover medical expenses, pay off debts, or manage other costs associated with their illness.

This benefit is particularly valuable as it offers a way for the insured to use their policy proactively, rather than waiting until after death for the beneficiaries to receive the total death benefit amount. By enabling policyholders to leverage their death benefit early, it addresses immediate financial needs, which can alleviate financial stress during difficult circumstances.

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A clause that increases the death benefit amount over time.

A refund of premiums paid if the insured does not pass away.

A feature that provides accidental death coverage only.

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