What is the minimum percentage of the original death benefit a beneficiary may receive after an insured has taken accelerated death benefits?

The correct choice indicates that a beneficiary may receive a minimum of 0% of the original death benefit after the insured has taken accelerated death benefits. This occurs because accelerated death benefits allow the insured to access a portion of the death benefit while still alive, typically in order to cover costs associated with terminal illness, long-term care, or other significant medical expenses.

When an insured accesses these benefits, the amount they receive is deducted from the total death benefit that would otherwise be payable at death. In some cases, the amount drawn might be significant enough that the remaining benefit left for the beneficiary upon the insured's death could indeed be 0%. This is particularly true if the acceleration of benefits was substantial relative to the total policy value.

It’s important to understand this dynamic, as it underscores the nature of accelerated benefits and how they affect the overall payout to beneficiaries. Depending on the policy provisions, there may not be a guarantee that any remaining death benefit will be available after the acceleration, especially if the insured has utilized most or all of the benefit. Such policies often specify the method for calculating remaining benefits post-acceleration, further illustrating why zero is a plausible outcome in this context.