What triggers an accelerated (living) benefit according to insurance policy guidelines?

The correct response is that an accelerated (living) benefit is typically triggered by a qualifying event. In the context of life insurance, a qualifying event is often associated with circumstances such as a terminal illness diagnosis, long-term care needs, or other significant health issues that allow the insured to access a portion of their death benefit while still alive. This is designed to provide financial support during critical times, enabling insured individuals to utilize benefits for medical expenses, care, or other needs that arise due to their health condition.

While a final diagnosis of terminal illness can certainly be one of the qualifying events that allow for the acceleration of benefits, it does not encompass all potential scenarios that can trigger this benefit. The essence of the qualifying event is that it broadly defines the circumstances under which an insured may access these funds, making it the foundational element for triggering an accelerated benefit.

Other options, such as policy lapse and application for benefits, serve different purposes within the insurance context. A policy lapse generally stops coverage and may not be linked to benefit acceleration, while an application for benefits is a procedural step rather than a trigger itself.