Riders

Which of the following explanations best describes the purpose of the waiver of premium provision of a life insurance policy?

The waiver of premium provision waives premium payments during a disability, and keeps the policy in force. The disability must be total and permanent. After a certain age (usually 60 or 65), the waiver of premium provision is no longer valid. The correct answer is: It waives the insured's premiums if the insured is totally disabled before a specified age.

Under what conditions will the waiver of premium rider pay benefits?

The waiver of premium rider stipulates that the insured must be totally and permanently disabled in order to pay benefits. The correct answer is: If the insured is totally and permanently disabled

What is the term for a policy element that adds or takes away coverage?

A rider is attached to a policy and either adds or takes away from coverage. The correct answer is: Rider

Which life insurance rider affecting the policy's death benefit protects against the chance of depleting income during prolonged life?

An annuity rider can be added onto a life insurance policy. Annuities protect against the chance of depleting income for prolonged life. The correct answer is: Annuity rider

The Guaranteed Insurability Rider, or GIR, allows the insured to buy:

The Guaranteed Insurability Rider (GIR) permits the insured to buy additional amounts of life insurance coverage at specific points in time in the future, as specified in the policy, without proof of insurability. The correct answer is: More insurance coverage at specified points in the future, without proof of insurability

The principal sum of a AD&D rider attached to a life insurance policy pays:

The accidental death and dismemberment (AD&D) rider pays a principal sum if the insured loses any of the following due to an accident: both hands, both arms, both legs, or vision in both eyes. The correct answer is: A principal sum if the insured loses both arms

Some riders can affect the death benefit of a life insurance policy. Which of the following riders can decrease the death benefit?

The long-term care rider can reduce the death benefit if the decrease is incorporated into the life insurance policy. The correct answer is: Long-term care rider

Which of the following best describes the return of premium rider

The return of premium rider pays the total amount of premiums paid into the policy as long as the insured dies within a certain time period specified in the policy. The correct answer is: The return of premium rider pays the total amount of premiums paid into the policy as long as the insured dies within a certain time period specified in the policy.

Which life insurance rider pays an amount equal to the total premiums paid as long as the insured dies during a certain time period, as stated in the policy?

The return of premium rider pays the total amount of premiums paid into the policy as long as the insured dies within a certain time period specified in the policy. The death benefit is comprised of the face amount plus the total premiums paid into the policy. The correct answer is: Return of premium

When a juvenile covered by a payor rider reaches the specified age, what happens to the ownership of the policy?

When a child covered on a payor rider reaches the specified age, he/she can assume ownership of the policy. The correct answer is: The juvenile can assume ownership of the policy.

The appropriate rider allows premium payments to be waived in the event of disability. What is the normal waiting period for premiums to be waived?

There is usually a waiting period of 3 or 6 months once the policy owner becomes disabled before the first premium will be waived. The correct answer is: 3 or 6 months

Riders covering additional insureds can be added to life policies. A popular rider is the children's term rider. All of the following can be covered by the children's term rider, EXCEPT:

The children's term rider does not apply to younger siblings of the policyholder. Only children of the policyholder can be covered under the children's term rider. The correct answer is: Younger siblings of the policyholder

All of the following statements are true about the accidental death benefit (ADB), EXCEPT:

The accidental death benefit is a multiple of the policy benefit, usually double or triple. The correct answer is: The amount paid is one half of the face amount of the life insurance policy.

Of the following life insurance policy riders, which does not alter the amount of the death benefit?

The payor rider only waives premiums if the person paying premiums becomes disabled or dies before the insured child reaches age 21, at which point premium payments resume. The correct answer is: Payor

Jon's life insurance policy contains a disability income benefit that will pay him a periodic income in the event he becomes disabled. What factor determines the amount of the benefit?

The period income is based on the policy's face amount. Neither the frequency of payment nor the cause of disability is pertinent to the amount of the benefit. The correct answer is: The face amount of the policy