Life Insurance Riders

Question 1

Waiver of Premium

Answer 1

Waives premium during periods of total disability

Question 2

Waiver of premium might be limited to disabilities that begin prior to…

Answer 2

65

Question 3

Waiver of premium might require how many months of disability before going into effect?

Answer 3

6 months

Question 4

Waiver of premium is not…

Answer 4

A loan against the policy

Question 5

Payor Benefit

Answer 5

Waives premium for insurance on a child until age 21 or 25 if a parent dies or becomes disabled

Question 6

Return of Premium

Answer 6

Pays death benefit and amount of paid premiums if the insured dies during a specific term

Question 7

For return of premium, if death occurs beyond the term…

Answer 7

Insurer only pays death benefit

Question 8

Guaranteed Purchase Option/Guaranteed Insurability Rider

Answer 8

Gives policyholder the option of buying more coverage at certain intervals or upon life events regardless of health

Question 9

For Guaranteed Purchase Option/Guaranteed Insurability Rider, cost of new insurance will be based on…

Answer 9

Attained age

Question 10

For Guaranteed Purchase Option/Guaranteed Insurability Rider, option might stop at…

Answer 10

65

Question 11

Cost of Living Adjustments

Answer 11

Increases death benefit based on inflation, an economic index, or by a set amount on a regular schedule

Question 12

Cost of living adjustments actually add what to an existing policy?

Answer 12

Increasing term insurance

Question 13

Automatic Premium Loan

Answer 13

Free rider to perm LI that pays premium plus interest out of remaining cash value after grace period has ended

Question 14

Double Indemnity/Accidental Death Rider

Answer 14

Pays double the death benefit for death from an accident

Question 15

For Double Indemnity/Accidental Death Rider, insured must die within…

Answer 15

90 days of accident

Question 16

For Double Indemnity/Accidental Death Rider, doesn’t apply if older than…

Answer 16

65

Question 17

Accidental Death and Dismemberment

Answer 17

Pairs accidental death insurance with dismemberment coverage

Question 18

Accidental Death and Dismemberment: Principal Sum

Answer 18

Pays when insured dies or loses multiple limbs

Question 19

Accidental Death and Dismemberment: Capital Sum

Answer 19

Smaller amount pays when insured loses an eye or limb

Question 20

Accelerated Death Benefits

Answer 20

Allow the insured to utilize parts of the death benefit, not just cash value, prior to death

Question 21

Accelerated death benefits will have…

Answer 21

Dollar-for-dollar reduction in death benefit for beneficiary

Question 22

Accelerated death benefit can access death benefit is insured person is diagnosed with…

Answer 22

Terminal illness (2 years to live)

Question 23

Money from accelerated death benefit can be used…

Answer 23

As needed and not just for medical care

Question 24

For accelerated death benefit, remainder of death benefit will…

Answer 24

Still go to beneficiary

Question 25

Disability Income Rider

Answer 25

Allows the insured to receive portion of death benefits in case of total disability

Question 26

Disability Income Rider often requires waiting period of disability before…

Answer 26

Benefits will be paid