Florida 2-15 Life, Health and Variable Annuity AgentFlorida Laws and Regulations Specific to Life Insurance and AnnuitiesEasy
A Florida resident is purchasing a life insurance policy and wants to ensure that if they become totally disabled, future premiums will be waived, relieving them of the financial burden. Which policy rider should the agent recommend to meet this specific need?
- AGuaranteed Insurability Rider
- BWaiver of Premium Rider
- CCost of Living Rider
- DAccidental Death Benefit Rider
Show answer & explanationAnswer & explanation
Correct answer: B. Waiver of Premium Rider
The Waiver of Premium Rider is specifically designed to waive future premium payments if the insured becomes totally and permanently disabled, ensuring the policy remains in force without financial strain.
Why the other options are wrong
- A. The Guaranteed Insurability Rider allows the insured to purchase additional coverage without evidence of insurability.
- C. The Cost of Living Rider increases the death benefit to keep pace with inflation, not for disability.
- D. The Accidental Death Benefit Rider pays an additional benefit if death is due to an accident, not for disability.
Waiver of Premium Rider
A life insurance rider that waives future premium payments if the insured becomes totally and permanently disabled.
- Premiums are waived during disability.
- Policy remains in force.
- Typically requires a waiting period after disability onset.
Memory trick: Riders add protection: waive, add, or double.