Texas General Lines — Life, Accident, Health and HMOLife InsuranceMedium
A life insurance policyowner wants to ensure that if they become disabled and are unable to work, their policy will continue to pay out a monthly income to them. Which rider should they add to their policy?
- AWaiver of Premium Rider
- BGuaranteed Insurability Rider
- CDisability Income Benefit Rider
- DAccidental Death Benefit Rider
Show answer & explanationAnswer & explanation
Correct answer: C. Disability Income Benefit Rider
The Disability Income Benefit Rider provides a monthly income to the insured if they become totally disabled, as opposed to just waiving premiums.
Why the other options are wrong
- A. This rider waives future premiums if the insured becomes totally disabled, but does not provide income.
- B. This rider allows the insured to purchase additional coverage without proof of insurability.
- D. This rider pays an additional sum if death occurs due to an accident.
Disability Income Benefit Rider
A life insurance rider that provides a monthly income benefit to the insured if they become totally disabled and unable to work.
- Provides monthly income
- Triggered by total disability
- Supplements income during disability
- Separate from Waiver of Premium
Memory trick: Disability riders protect your pay and your policy, like a double shield.