In a life policy, the special benefit that prepays a portion of the death benefit during the lifetime of an insured in the event of a specified illness is called:

The concept at the heart of this situation is the provision in a life insurance policy that allows for the prepayment of a portion of the death benefit if the insured is diagnosed with a specified serious illness. This feature is commonly referred to as an acceleration of life insurance benefit.

When an insured individual faces a terminal illness or another qualifying health condition, they may need funds to cover medical expenses or other costs related to their care. By accessing this benefit, they can receive a portion of the death benefit while still alive, thus providing financial support during a challenging time. This prepayment can help alleviate financial pressures and allow the insured to make meaningful decisions about their care or fulfill last wishes.

In the context of life insurance, this feature is particularly important as it aligns with the policy owner's needs during critical health events, making it a valued aspect of many modern insurance policies. It provides flexibility and security, recognizing the financial demands that can arise in the face of severe health challenges.

The other options, while they may sound similar, do not accurately capture the specific mechanism of this provision. An illness benefit generally refers to benefits that may be paid out in the event of a critical illness, a living benefit might imply benefits received while the policyholder is alive without the