If the insured accepts payment from the accelerated benefit provision, what typically happens to the death benefit?

When the insured opts to utilize the accelerated benefit provision in a life insurance policy, this usually results in a reduction of the death benefit. The accelerated benefit allows the policyholder to access a portion of the death benefit while still alive, typically due to a terminal illness or critical condition. This withdrawal decreases the total death benefit available to beneficiaries upon the policyholder's passing.

By taking this advance payment, the policyholder essentially acknowledges that their coverage amount will be diminished, as part of the death benefit has already been paid out to them. Consequently, when the insured does ultimately pass away, the amount available to beneficiaries will reflect this reduction, as the total death benefit has been decreased by the amount that was accelerated.

This understanding is important for policyholders contemplating using such provisions and highlights the impact on their beneficiaries' future claims.