Chapter 8- Policy Rider

Question 1

If insured becomes totally and permanently disable due to illness or injury prior to a specific age company will waive its right to receive premium. Premiums will be waive for duration of disability or until 65. Does not have to repay premium. Usually after 6 months of disability it will be effective

Answer 1

Waiver of premium

Question 2

Waiver of cost of insurance rider

Answer 2

Waiver of premium for UL. Will waive cost of insurance and administrative charges.

Question 3

Waiver of premium for UL. Will waive cost of insurance and administrative charges.

Answer 3

Waiver of premium rider

Question 4

Waiver of premium

Answer 4

If insured becomes totally and permanently disable due to illness or injury prior to a specific age company will waive its right to receive premium. Premiums will be waive for duration of disability or until 65. Does not have to repay premium. Usually after 6 months of disability it will be effective

Question 5

Disability income benefit

Answer 5

Waiver of premium and monthly income to totally disable insured

Question 6

Waiver of premium and monthly income to totally disable insured

Answer 6

Disability income benefit

Question 7

Pryor benefit (juvenile insurance)

Answer 7

Waives policy premium if owner is totally disabled or death. Waiver until a specified age usually 21 or 25 then payments are picked up without repayments

Question 8

Waives policy premium if owner is totally disabled or death. Waiver until a specified age usually 21 or 25 then payments are picked up without repayments

Answer 8

Payor benefit (juvenile insurance)

Question 9

Accelerated (living) benefit rider

Answer 9

In the event of terminal illness insurer agrees to advance payment of death benefit in whole or in part. Rider specifies how. Lowers death benefit.

Question 10

In the event of terminal illness insurer agrees to advance payment of death benefit in whole or in part. Rider specifies how. Lowers death benefit.

Answer 10

Accelerated (living) benefit rider

Question 11

Spouse/children insurance rider

Answer 11

Allows addition of insured spouse children to be added to policy and also same goes for spouse. If both spouse and children the family insurance rider is used.

Question 12

Allows addition of insured spouse children to be added to policy and also same goes for spouse. If both spouse and children the family insurance rider is used.

Answer 12

Spouse/children insurance rider

Question 13

Accidental death benefit

Answer 13

Additional death benefit if insured dies in an accident. Normally double the face amount. Sometimes more. Must occur before age 70 and death must occur 90 days after accident.

Question 14

Additional death benefit if insured dies in an accident. Normally double the face amount. Sometimes more. Must occur before age 70 and death must occur 90 days after accident.

Answer 14

Accidental death benefit rider

Question 15

Guaranteed insurability rider

Answer 15

Owner is guaranteed the ability to purchase insurance at specified ages without underwriting. Amount and when is specified.

Question 16

Owner is guaranteed the ability to purchase insurance at specified ages without underwriting. Amount and when is specified.

Answer 16

Guaranteed insurability rider

Question 17

Cost of living rider

Answer 17

Protects owner again events like inflation of face amount by slowing owner to increase death benefit to match the consumer price index. Will increase premium. Do not go through underwritting.

Question 18

Protects owner again events like inflation of face amount by slowing owner to increase death benefit to match the consumer price index. Will increase premium. Do not go through underwritting.

Answer 18

Cost of living rider

Question 19

Return of premium rider

Answer 19

Increasing term insurance. Pays additional benefit to beneficiary equal to the sum of premiums paid to date.

Question 20

Increasing term insurance. Pays additional benefit to beneficiary equal to the sum of premiums paid to date.

Answer 20

Return of premium rider

Question 21

Return of cash value rider

Answer 21

Increasing term insurance. Pays additional benefit equal to cash value of the base whole life policy at time of death.

Question 22

Increasing term insurance. Pays additional benefit equal to cash value of the base whole life policy at time of death.

Answer 22

Return of cash value rider

Question 23

Term rider

Answer 23

Term insurance can be combined with permanent base policy as a rider. Trying to have both. Increase value.

Question 24

Term insurance can be combined with permanent base policy as a rider. Trying to have both. Increase value.

Answer 24

Term rider