State RegulationsMI specificDifficulty 1/5
What does a living benefit (accelerated death benefit) provision or rider on a Michigan life insurance policy provide?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Michigan's living benefit provisions, governed by M.C.L. 500.3928 and 500.3949, allow an insurer to pay part of the death benefit to the policyowner while the insured is still living when the qualifying condition specified in the rider is met. The payment is an acceleration of the existing death benefit, not an addition to it.
Why the other options are wrong
- A) Doubling the benefit for accidental death describes an accidental-death supplement, not an acceleration of benefits while living.
- B) Waiving premiums after disability is a separate waiver-of-premium provision, not a living benefit rider.
- C) A return-of-premium feature at maturity has nothing to do with accelerating the death benefit during the insured's lifetime.
Memory hook
Living benefits borrow from the death benefit — early, not extra.