Life & Health Insurance Exam (National Portion)Life InsuranceEasy
A life insurance policyowner wants to ensure that if they become totally disabled, premiums will be waived, and the policy will remain in force. Which rider should they add to their policy?
- AAccidental Death Benefit Rider
- BWaiver of Premium Rider
- CCost of Living Rider
- DGuaranteed Insurability Rider
Show answer & explanationAnswer & explanation
Correct answer: B. Waiver of Premium Rider
The Waiver of Premium Rider is specifically designed to waive premium payments if the insured becomes totally disabled, keeping the policy active.
Why the other options are wrong
- A. Accidental Death Benefit pays an additional sum if death is due to an accident.
- C. Cost of Living Rider increases the policy's face amount to keep pace with inflation.
- D. Guaranteed Insurability allows purchasing additional coverage without evidence of insurability.
Waiver of Premium Rider
A life insurance rider that waives future premium payments if the insured becomes totally disabled, ensuring the policy remains in force.
- Requires total disability (as defined in the policy)
- Premiums are waived, not due
- Policy benefits remain intact
Memory trick: Riders add special powers to your policy, like a shield against premium payments when you can't work.