Life Policy Riders
Cost of Living Rider
A long stretch of national economic hardship causes a 7% rate of inflation. A policy owner notices that the face value of her life insurance policy has been raised 7% as a result. Which policy rider cause this change?
Universal Life
The Waiver of Cost of Insurance rider is found in what type of insurance?
Accelerated Benefit provision
A provision in a life insurance policy that provides for the early payment of some portion of the policy face amount should the insured suffer from a terminal illness or injury is called
Guaranteed insurability option
An individual is purchasing a permanent life insurance policy with a face value of $25,000. While this is all the insurance that he can afford at this time, he wants to be sure that additional coverage will be available in the future. Which of the following options should be included in the policy?
Guaranteed insurability
At the time the insured purchased her life insurance policy, she added a rider that will allow her to purchase additional insurance in the future without having to prove insurability. This rider is called
Waiver of premium
The rider in a whole life policy that allows the company to forgo collecting the premium if the insured is disabled is called
Semiannually
Every long-term care insurer in California must submit to the Commissioner a list of all agents or other insurer representatives authorized to solicit individual consumers for the sale of long-term care insurance. These submitted agent lists must be updated at least
Guaranteed insurability rider
If a life policy allows the policy owner to make periodic additions to the face amount at standard rates, without proving insurability, the policy includes a
6 months
What is the waiting period on a Waiver of Premium rider in life insurance policies?
It will decrease the benefits paid to the beneficiary
Which of the following statements best describes the effect the Accelerated Benefit provision would have on the benefits paid to the beneficiary?
Monthly premium waiver and monthly income
Z falls from the roof of his house while fixing it and damages his spinal column enough to render him disabled for a year. his insurance policy carries a Disability Income Benefit rider. Which of the following benefits will Z receive?
This rider is available to all insureds with no additional premium
All of the following are true regarding the guaranteed insurability rider EXCEPT