What is a "living benefit" rider?

A "living benefit" rider is indeed a provision that allows the insured to access death benefits while still alive. This feature is designed to provide financial assistance in the event of a terminal illness or critical health condition. If the insured faces a life-threatening illness, they can utilize a portion of the policy's death benefit to cover medical expenses, pay off debts, or handle other financial needs. This rider is particularly valuable as it offers additional flexibility and support to policyholders during challenging times, allowing them to allocate funds for their immediate needs rather than waiting for the death benefit to be disbursed after their passing.

The other responses pertain to different aspects of life insurance. A tax advantage for policyholders over age 65 does not specifically relate to the benefits available from the living benefit rider. Similarly, a type of beneficiary designation is about specifying who will receive the death benefit upon the insured's death rather than accessing benefits while the insured is alive. The option to convert term insurance to whole life relates to changing the structure of the policy rather than accessing benefits, which is the primary function of a living benefit rider.