Which aspect of a death benefit rider helps preserve wealth for beneficiaries?

• A. Reduces death benefit to save taxes.
• B. Provides a guaranteed payout to beneficiaries.
• C. Accelerates life payments.
• D. Eliminates rider fees after 10 years.

Answer: (B)

A death benefit rider that provides a guaranteed payout ensures a fixed, predictable amount is paid to beneficiaries when the insured dies. This guarantees liquidity for the heirs to cover estate taxes, debts, funeral costs, and other expenses, helping to maintain the intended wealth transfer. Since the death benefit is typically paid income-tax-free to beneficiaries, the amount that's passed on remains intact, maximizing what the heirs receive. Other options either reduce the amount available at death or shift funds to the insured during life, which can diminish the wealth passed on, or describe fee changes that don’t affect the payout guarantee.