Which of the following terms describes something that is used to add benefits to a life insurance policy and customize the coverage to an insured's particular needs?
C. A rider
All of the following statements about the waiver of premium rider are true EXCEPT
C. with the waiver of premium rider, premiums are reduced by 80% during any period that the insured is disabled
Which of the following riders allow insureds who are terminally ill to obtain benefits from insurance policies prior to their death?
D. Accelerated benefits rider
For an accidental death benefit rider to be payable the insured must die (due to injury from the accident) within how many days of the accident?
B. 90
Which rider lets insureds buy additional coverage without proof of insurability in order to keep pace with inflation?
B. Cost of living
Tammy has a $100,000 life insurance policy with a double indemnity rider. Tammy is killed in an automobile accident. How much will the policy pay?
B. $200,000
Kumar has a life insurance policy with a rider that will pay him $1,000 per month if he is totally and permanently disabled. Which type of rider does he have?
B. Disability income rider
Paul has a life insurance policy on his son for which he pays all the premiums. A rider to this policy states that if Paul becomes permanently and totally disabled, the premiums will be paid until his son reaches age 21, at which point his son will take over the premium payments.
Which type of rider does he have?
D. Payor rider
Which of the following riders allows for an advance of the death benefit if the insured is confined to a nursing home or cannot perform the activities of daily living?
A. Long-term care rider
Alberta is concerned that if she became totally and permanently disabled, she would not be able to pay her life insurance premiums and the policy will lapse. Which type of rider should she consider to protect against this possibility?
B. Waiver of premium rider
Which of the following riders is increasing term insurance that always equals the total premiums paid during the time the policy is in effect?
B. Return of premium
Which of the following is waiver of all future premiums in the event of total and permanent disability?
C. Waiver of premium
Which of the following is a guarantee that at specified ages, dates, or events, the insured may buy additional insurance without a medical exam?
D. Guaranteed insurability
The amount of money paid by an accidental death benefit rider if the insured dies in an
accident is referred to as the
A. principal sum
The amount of money paid by an accidental death and dismemberment rider if the insured
is disabled in an accident is referred to as the
