Policy Riders, Provisions, Options, and Exclusions
A whole life owner needs extra protection only while a business loan is outstanding. Which addition most directly fits that limited-duration need?
Answer and explanation
Answer: C. A term rider can add temporary insurance to an existing permanent policy for a fixed period. That makes it suitable for an extra need that is expected to end, such as a loan obligation.Source: New York State Department of Financial Services — Life Insurance Information for Consumers — Optional Riders & Supplemental Benefits > Term Riders
More policy riders, provisions, options, and exclusions questions
- An insured whose policy carries a standard aviation exclusion dies as a fare-paying passenger on a scheduled commercial airline. What does the insurer ordinarily pay?
- An insured with an accidental death and dismemberment rider loses the sight of both eyes in a covered accident. What does the rider ordinarily provide?
- An insurer tries to add an aviation exclusion after issue even though no aviation risk was disclosed or identified during underwriting. How does that compare with the Compact standard?
- An insurer wants to rely on a company underwriting manual to deny a claim, although the manual was never attached to the policy. What does the entire contract provision mean for that argument?
- An owner adds a spouse term rider to a base whole life policy. How is coverage structured for the spouse?
- An owner creates a trust for minor children and names the trust as policy beneficiary. What is the trustee's relevant role after the insured's death?
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