Chapter 12

Question 1

Add-ons to a policy are called..?

Answer 1

riders

Question 2

The rider that allows the policyholder to buy more coverage without proving that they are still insurable is called..?

Answer 2

guaranteed insurability rider

Question 3

The rider that doubles or triples the face amount if the insured dies within 90 days of being in a causal accident is called..?

Answer 3

accidental death (aka double indemnity) rider

Question 4

_______ can be used when the insured becomes disabled and is unable to work, they do not have to pay premiums.

Answer 4

Waiver of premium rider

Question 5

________ can be used when the insured becomes disabled and is unable to work, they do not have to pay premiums AND the insurance company will pay them a monthly income.

Answer 5

Disability income rider

Question 6

________ can be used when the insured becomes terminally ill, they can collect a portion of the death benefit while they are still alive.

Answer 6

Accelerated death benefit/living need rider

Question 7

________can be used if the payor of a juvenile policy dies or becomes disabled, the policy will remain in force and premiums will be waived until the child reaches a certain age

Answer 7

Payor rider

Question 8

______ allows the insured to tap into the death benefit to pay for nursing home care or home health care expenses.

Answer 8

Long term care (LTC) rider