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What is the purpose of a "terminal illness rider"?

To increase the death benefit upon the policyholder's death

To allow access to funds if diagnosed with a terminal illness

A terminal illness rider is designed to offer financial support to the policyholder who has been diagnosed with a terminal illness. This rider allows the insured person to access a portion of their life insurance policy's death benefit while they are still alive, typically when their life expectancy is measured in months rather than years. The funds obtained can be used at the discretion of the policyholder, often to cover medical expenses, palliative care, or to fulfill any personal wishes while they are still living.

This added benefit can alleviate some financial pressure during a challenging time, providing the policyholder with needed resources to improve their quality of life or to settle affairs before passing. The activation of this rider can significantly impact a policyholder's planning and financial decisions during the latter stages of a terminal illness.

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To provide additional coverage for accidents

To reduce premium payments during illness

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