What does an accelerated death benefit allow the insured to do?

An accelerated death benefit allows the insured to withdraw a portion of the death benefits from their life insurance policy if they are diagnosed with a terminal illness. This feature is designed to provide financial support to the insured during a difficult time, helping cover medical expenses or other costs associated with their condition. The amount that can be withdrawn typically depends on the policy terms and the severity of the illness, but it is crucial to note that this withdrawal reduces the overall death benefit available to beneficiaries upon the insured's passing.

The other options do not accurately describe what an accelerated death benefit entails. Accessing full death benefits at any time or transferring benefits immediately upon policy purchase does not align with the purpose of an accelerated death benefit, which is specifically targeted towards terminal illness scenarios. Additionally, cashing out the entire policy value is more indicative of a surrender option rather than an accelerated death benefit's intended function.