What does the "accelerated benefits" clause in annuities allow?

The "accelerated benefits" clause in annuities is specifically designed to provide policyholders access to their benefits earlier than the typical terms allow, particularly in circumstances related to health issues. This clause enables individuals who may be facing terminal illnesses or severe health conditions to receive a portion of their death benefit or annuity payments while they are still alive. This feature is especially valuable for those in need of immediate financial assistance due to medical expenses or other urgent financial needs arising from their health status.

While other options touch on investment-related aspects or withdrawals, they do not capture the essence of what the accelerated benefits clause is intended for. The focus of this clause is primarily on providing financial support in the context of health-related challenges, making early access to funds crucial for the policyholder's well-being during difficult times.