When can a policyholder access living benefits?

The opportunity for a policyholder to access living benefits is primarily linked to specific circumstances like being diagnosed with a terminal illness. Living benefits are provisions that allow insured individuals to receive a portion of their life insurance policy's death benefit while they are still alive, typically to help cover medical expenses, long-term care, or other financial burdens arising from their condition.

In the context of terminal illnesses, these benefits can provide crucial support when the policyholder's prognosis indicates a limited life expectancy. This access is designed to assist individuals during a challenging time, ensuring they can utilize their benefits in a way that serves their current needs, rather than solely relying on the death benefit that is payable upon their passing.

The other options do not accurately reflect the nature of living benefits. Accessing these benefits is not tied to retirement age or contingent upon the policyholder's death, thus clarifying why those choices do not align with the characteristics of living benefits as designed in life insurance policies.