LI Policy Riders

Question 1

Waiver of Premium

Answer 1

Future premiums waived if insured becomes permanently disabled as a result of injury or illness prior to a specified age

May have elimination period - usually premium paid during this time are refunded after the period

Question 2

Guaranteed Insurability

Answer 2

Allows purchase of additional coverage in the stated period without the need for further medical examination

Ex) every 3 years from age 21-40

Question 3

Accidental Death

Answer 3

Pays out additional amount if insured dies as a result of an accident - usually equivalent to the amount of the face amount of the life policy

Aka “double indemnity rider”

Question 4

Family Income Benefit Rider

Answer 4

Pays monthly income to the beneficiary in addition to policy face amount for a stated period to help with expenses during transition period after death of insured

Question 5

Child Term

Answer 5

Provides death benefit should child die before specified age

Plan reaches maturity, can be converted to whole life up to a multiple of the ride amount (perhaps 4-5x) without evidence of insurability

Question 6

Spouse Term

Answer 6

Allows for spouse to have term life under a permanent policy insuring their spouse

Question 7

LTC Rider

Answer 7

Allows a portion of the policy death benefit to be paid while the insured is alive and is in need of LTC services

Question 8

Terminal Illness Rider

Answer 8

Portion of the death benefit to be paid while insured is alive and has been diagnosed with a terminal illness

Question 9

Return of premium rider

Answer 9

Refunds premiums paid over a specified term if insured is alive at the end of the period or refunds the premiums paid to the beneficiary at the death of the insured.