Which statement regarding accelerated benefits is FALSE?

• A. Accelerated benefits are effective for illness immediately upon the effective date.
• B. Accelerated benefits may be paid for illness with proper documentation.
• C. Accelerated benefits are subject to the policy terms and definitions.
• D. Accelerated benefits may be paid in a lump sum as allowed by the policy.

Answer: (A)

Accelerated benefits let the insured access part of the life insurance death benefit earlier when a qualifying illness is diagnosed and proper documentation is provided. They are not automatically available from the policy’s effective date; eligibility depends on meeting the policy’s definitions and medical confirmation.

That’s why the statement claiming immediate effectiveness is false—the benefit isn’t triggered simply by the policy starting. Instead, you must have a diagnosed illness that the policy defines as eligible and submit the required physician documentation. The other statements align with how accelerated benefits typically operate: they’re defined by the policy terms, may be paid for illness with proper documentation, and can be taken as a lump sum if the policy allows it.