What type of rider provides coverage acceleration in case of terminal illness?

The accelerated death benefit rider is designed specifically to allow policyholders to access a portion of their life insurance death benefit while they are still alive, in the event that they are diagnosed with a terminal illness. This provides financial support to the insured, enabling them to cover medical expenses, settle debts, or address other financial needs during a challenging time.

This rider is particularly beneficial because it ensures that individuals facing life-limiting health conditions can utilize their policy for immediate living expenses, rather than having to wait until the time of death to access benefits. The amount available for acceleration typically depends on the terms of the insurance policy, which can help alleviate financial burdens as the policyholder manages their condition.

In contrast, the other types of riders mentioned serve different purposes. The waiver of premium rider allows for the premiums to be waived if the insured becomes disabled, the long-term care rider provides benefits for long-term care services, and the guaranteed insurability rider allows the policyholder to purchase additional insurance at specified times without needing to provide evidence of insurability. Each rider has its distinct function, but the accelerated death benefit rider specifically addresses the needs of those with terminal illnesses.