Florida 2-15 Life, Health and Variable Annuity AgentGeneral Knowledge of Life InsuranceEasy
A client wants to ensure their life insurance policy will continue to pay premiums if they become totally and permanently disabled. Which rider should they add to their policy?
- AAccidental Death Benefit Rider
- BWaiver of Premium Rider
- CGuaranteed Insurability Rider
- DCost of Living Rider
Show answer & explanationAnswer & explanation
Correct answer: B. Waiver of Premium Rider
The Waiver of Premium Rider is designed to waive future premium payments if the insured becomes totally and permanently disabled, ensuring coverage continues.
Why the other options are wrong
- A. The Accidental Death Benefit Rider pays an additional amount if death is due to an accident.
- C. The Guaranteed Insurability Rider allows the policyholder to purchase additional coverage without proof of insurability.
- D. The Cost of Living Rider increases the death benefit to keep pace with inflation.
Waiver of Premium Rider
A life insurance rider that waives premium payments if the insured becomes totally and permanently disabled, keeping the policy in force.
- Waives premiums during disability
- Policy remains active
- Usually has a waiting period
- Definition of disability varies by policy
Memory trick: Riders add extra protection, like armor for your policy.