Quiz: Other Common Policy Riders

Which of the following statements regarding the accidental death benefit (ADB) rider to a life insurance policy is correct ? A. As long as the death can be attributed to an accident, ADB benefits are payable regardless of the time that has elapsed since the accident. . B. Benefits are payable under the accidental death benefit rider only if the insured dies as the direct result of an accident. C. This rider is available with all life insurance policies at no charge. D. There is no age limit at which the policyowner may add an ADB rider to his or her policy.

B. Benefits are payable under the accidental death benefit rider only if the insured dies as the direct result of an accident. An accidental death benefit rider pays its additional benefit only if death occurs as the direct result of an accident.

Which rider gives the policyowner the option to increase his or her life insurance policy's face amount based on an inflation index? A. guaranteed insurability rider B. cost-of-living rider C. accidental death benefit rider D. accelerated benefits rider

B. cost-of-living rider The cost-of-living rider lets the policyowner increase the face amount on his or her policy to fight inflation. This type of rider is tied to an inflation index such as the consumer price index (CPI). As the CPI increases, so does the coverage, without requiring the insured to prove insurability.

All the following are types of riders that are available with most types of life insurance policies EXCEPT: A. accidental death benefit rider B. cost-of-living rider C. guaranteed dividend rider D. guaranteed insurability rider

C. guaranteed dividend rider Policy dividends can never be guaranteed, by rider or otherwise.

Besides select policy anniversary dates, a life insurance guaranteed insurability rider usually permits special alternative option dates that typically include all the following, EXCEPT: A. the birth of the policyowner's child B. the policyowner's marriage C. the policyowner's loss of a job D. the policyowner's adoption of a child

C. the policyowner's loss of a job Loss of a job is generally not a qualifying special event.