12.1a

Question 1

A policy ______, also known as an Endorsement, is a benefit that can be added to an insurance policy to provide extra protection dependent on the type of rider added. While a policy rider typically requires ______, the benefits provided by such rider can greatly benefit the policyowner or beneficiary in the future.

Answer 1

Rider

additional premium

Question 2

An Accidental Death Benefit Rider, also known as ______, offers an additional amount of life insurance equal to the face amount of the primary insurance plan if the insured’s death results from an accident.

Answer 2

Double Indemnity

Question 3

In comparison to the Accidental Death Benefit rider which only indemnifies upon the death of the insured, in the event that an insured survives an accident, but still loses a limb or eyesight, the ______ provides half of the death benefit amount to the insured.

Answer 3

Accidental Death and Dismemberment Rider

Question 4

If an insured is unable to earn an income due to an illness or disability and is unable to pay his or her insurance premiums, the ______ will prevent the policy from lapsing due to the lack of payments. In order for this to take effect, the insured must be unable to work, usually for a period of ninety days to six months.

Answer 4

Waiver of Premium Rider

Question 5

Concerning the Waiver of Premium Rider, during the ‘waiting period’, the insured must ______. If at the end of this period the insured is still unable to work, all premiums paid during the ‘waiting period’ will ______ and the insured will not have to pay premiums until they reach a specific age, which is usually 60 to 65.

Answer 5

continue to pay premiums

be refunded