Under which condition would an insured be eligible to receive funds from an accelerated (living) benefit rider?

An accelerated (living) benefit rider is designed to provide access to death benefits while the insured is still alive, typically under certain conditions that indicate a significant change in health status. The correct condition under which an insured would be eligible to receive funds from this rider is when the insured is terminally ill.

When an individual is diagnosed with a terminal illness, it likely means they have a limited amount of time left to live, and this qualifies them for an accelerated benefit. The purpose of this rider is to provide financial assistance during a difficult time, allowing the insured to utilize the death benefit for expenses such as medical bills, hospice care, or other end-of-life needs.

In contrast, while conditions like being in a nursing home or being hospitalized for an extended period may indicate serious health issues, they do not automatically qualify for an accelerated benefit as they do not necessarily imply a terminal condition. Being diagnosed with cancer could qualify for accelerated benefits, but not all cancer diagnoses are terminal. Thus, terminal illness is specifically the key factor that aligns with the purpose of an accelerated benefit rider.