What term describes the proceeds obtained from a life insurance contract when the policy-owner anticipates death or develops a life-threatening condition?

The term "Accelerated benefits" refers specifically to the proceeds that a policyowner can receive from a life insurance contract when they anticipate their death or have been diagnosed with a life-threatening condition. This feature allows policyholders to access a portion of their death benefit while they are still alive, which can be crucial for covering medical expenses, debts, or supporting their family during a difficult time.

This option is particularly relevant in scenarios where the policyholder may want to utilize some of the insurance benefits before the actual death occurs, recognizing the financial needs that can arise from severe health conditions. It distinguishes itself from other terms commonly associated with life insurance.

Other terms in the answer choices, such as "Life benefits," "Payout benefits," and "Death benefits," do not specifically refer to the provision of accessing benefits while still living. "Death benefits" typically describes the amount payable to beneficiaries upon the policyholder's death, whereas "Life benefits" and "Payout benefits" are not standard terms recognized in insurance practices and lack the specific context provided by accelerated benefits. This focus on immediate financial assistance in the face of a life-threatening diagnosis underscores the uniqueness of accelerated benefits in life insurance contracts.