In Pennsylvania, payment on an Accelerated Death Benefit Rider may NOT be less than what...

In Pennsylvania, anAccelerated Death Benefit Riderallows a life insurance policyowner to receive a portion of the policy’s death benefit early if the insured is diagnosed with a qualifying terminal or catastrophic illness. Pennsylvania insurance regulations and approved licensing materials clearly state that the accelerated benefitmay not be less than 25% of the policy’s total death benefit.

This minimum requirement ensures that the rider provides meaningful financial assistance to the insured during periods of severe medical need, such as covering treatment costs, long-term care, or other end-of-life expenses. While insurers may limit the maximum percentage that can be accelerated, they cannot offer a benefit lower than this statutory threshold once acceleration is triggered.

The remaining answer choices—10%, 60%, and 75%—do not reflect Pennsylvania’s mandated minimum and are therefore incorrect. Pennsylvania law seeks to balance consumer protection with insurer solvency by enforcing this standard. Consequently,25%is the correct and verified answer under Pennsylvania Life Insurance regulations.