When would an insured qualify to receive funds from an accelerated (living) benefit rider?

An insured qualifies to receive funds from an accelerated (living) benefit rider primarily when they have a terminal illness. This provision allows an individual who has a life expectancy of typically six months or less to access a portion of their death benefit while still alive to assist with medical or other expenses.

The concept behind living benefit riders is to provide financial support at a time when the policyholder may be facing high medical costs due to a terminal condition. This benefit helps alleviate some of the financial burdens associated with long-term medical care, allowing the insured some flexibility in managing their affairs during a difficult period.

While options related to long-term care and nursing home residency can sometimes trigger benefits, they are generally not the primary criteria for accelerated benefits under traditional life insurance policies. Temporary disabilities do not qualify the insured for accelerated benefits, as these do not typically indicate a terminal condition.

Thus, when it comes to accessing accelerated benefits, the situation where the insured is diagnosed with a terminal illness is the scenario that most directly aligns with the intent and provisions of accelerated benefit riders.