Life Insurance Policy Provisions, Options, and Riders
How is the amount of cover under a family term rider usually expressed?
Answer and explanation
Answer: C. Family riders are sold in units, so buying more units raises the spouse and children's amounts together in the proportions the rider sets. The cover is not tied to cash value, to earnings, or divided equally across the family.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, family term rider units
More life insurance policy provisions, options, and riders questions
- A whole life owner needs extra protection only while a business loan is outstanding. Which addition most directly fits that limited-duration need?
- A widow wants income now but the capital preserved for her children. Which settlement option answers that?
- A young couple with three children want the whole household covered at modest cost under one contract. Which rider fits?
- Against what does an owner borrow when taking a policy loan?
- An accidental death benefit (double indemnity) rider pays an additional death benefit under what circumstance?
- An insured and the primary beneficiary die in the same accident and the common disaster clause applies. Where do the proceeds go?
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