What benefit is generally available to a life insurance policyowner diagnosed with a terminal illness?

A life insurance policyowner diagnosed with a terminal illness is typically eligible for an accelerated (living) benefit. This feature allows the policyholder to access a portion of the death benefit while still alive, which can help cover medical expenses, outstanding debts, or any other urgent financial needs resulting from the terminal condition.

The accelerated benefit is particularly beneficial during a time when the insured may have increased financial burdens due to healthcare costs and potential loss of income. By accessing this benefit, the insured can alleviate some of the financial stress they may be experiencing and utilize the funds in a manner that best supports their needs.

In contrast, the cash surrender value refers to the amount the policyowner can receive if they end their policy before it matures, but it may not be applicable or beneficial in the case of imminent death. The accidental death benefit applies only in situations where the insured dies due to an accident, which does not pertain to terminal illness. The waiver of premium benefit relieves the policyowner from paying premiums if they are disabled, but it does not provide direct financial assistance in relation to a terminal illness. Therefore, the accelerated benefit is specifically designed to address the needs of individuals facing the reality of a terminal illness, making it the correct choice.