Policy Riders, Provisions, Options, and Exclusions
A parent pays premiums on a juvenile life policy and dies before the insured child reaches majority. If the policy has a payor benefit rider and its conditions are met, what happens next?
Answer and explanation
Answer: C. A payor benefit rider on a juvenile policy waives subsequent premiums when the payor dies or becomes totally disabled before the juvenile reaches majority, subject to the rider's terms. The rider does not pay the juvenile policy's death benefit merely because the payor dies.Source: New York State Department of Financial Services — Life Insurance Information for Consumers — Optional Riders & Supplemental Benefits > Payor Benefit Rider
More policy riders, provisions, options, and exclusions questions
- Which statement about dividends on a participating whole life policy is correct?
- Why is naming a minor child directly as a life insurance beneficiary problematic?
- A beneficiary asks which part of the policy states the insurer's core promise to pay. Which provision should the producer point to?
- A beneficiary selects a straight life-income settlement. Which tradeoff is most important?
- A beneficiary wants equal installments of proceeds and interest for a selected number of years. Which settlement option fits?
- A buyer compares annual and monthly premium modes for the same term policy. Which cost point should the buyer verify?
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