All of the following statements about accelerated death benefits and viatical settlements are correct EXCEPT?

All of the following statements about accelerated death benefits and viatical settlements are correct EXCEPT?


A) A terminally ill person receives accelerated death benefits tax-free.

B) Accelerated benefit provisions are standard in most individual and group life insurance policies.

C) The maximum amount of accelerated benefits that a chronically ill person can exclude from income is limited.

D) An insured who sells an insurance policy to a viatical company usually receives 100% of the policy's face value.


Answer: D) An insured who sells an insurance policy to a viatical company usually receives 100% of the policy's face value.

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