Why might accelerated death benefits be important for policyholders?

Accelerated death benefits are important for policyholders because they allow individuals diagnosed with a terminal illness or facing a critical health condition to access a portion of their life insurance policy's death benefit while they are still alive. This can serve as a critical financial resource during a time when medical expenses are often unexpectedly high. By providing emergency funds, these benefits can help cover treatment costs, alleviate financial burdens for the insured and their families, or fulfill any last wishes, ensuring that individuals have a level of financial security during a significant health crisis. This aspect of accelerated death benefits underscores their value for policyholders who may be in urgent need of financial flexibility and support.

The other options do not accurately reflect the primary purpose of accelerated death benefits. Increasing the death benefit amount does not apply here, as the amount accessed is a portion of the existing benefit. Similarly, securing lower premium rates and guaranteeing payouts regardless of health don't pertain to the specific advantages offered by accelerated death benefits.