What type of benefit allows insured individuals to access part of their death benefit if diagnosed with a terminal illness?

The correct choice is accelerated death benefits. This feature within a life insurance policy allows the insured individuals who are diagnosed with a terminal illness to access a portion of their death benefit while they are still alive. This can provide financial support to cover medical expenses, hospice care, or other necessary costs that arise as a result of the terminal diagnosis.

Accelerated death benefits are particularly valuable as they enable policyholders to use their insurance coverage in a way that meets immediate needs rather than waiting until after death for the benefit to be paid out. The amount accessed typically reduces the total death benefit that will be paid to beneficiaries after the insured's death.

This feature distinguishes itself from options such as policy loans, which allow the insured to borrow against the cash value of their policy but do not provide immediate financial support based on a terminal illness diagnosis. Living benefits and cash value payouts can also refer to aspects of life insurance, but they do not specifically pertain to accessing funds due to a terminal illness diagnosis in the same way that accelerated death benefits do.