Policy Riders Flashcards
Waiver of Premium Rider
policyowner to waive premium payments during a disability and
keeps the policy in force
does not provide cash payments to the policyowner
disability must be
total and permanent
waiting period (90 days or 6 months)
After a certain age (usually 60 or 65), the waiver of premium rider is void
Payor Rider (or Payor Clause)
If the individual paying the premiums on a juvenile life policy
becomes disabled or dies, the Payor Rider ensures that premiums will be waived.
Accelerated Benefit Rider
Allows the insured to receive a portion of the death benefit prior to death
if the insured has a terminal illness and expected to die within 1-2 years. Whatever amount is
withdrawn in an accelerated death benefit will decrease the death benefit when death occurs.
Accidental Death Benefit Rider (multiple indemnity)
Pays an additional sum to the beneficiary if the
insured dies due to an accident
2x or 3x original benefit
Accidental Death and Dismemberment
May be added to a life insurance policy. Pays benefits for
dismemberment and accidental death. Pays a principal sum for loss of both hands, both arms, both legs,
or loss of vision in both eyes
Guaranteed Insurability Rider (future increase option)
buy addt’l
permanent life insurance coverage at specific points of time in the future without submitting proof of
insurability
&marriage & birth
Cost of Living Rider
Allows the policy face amount to be adjusted to account for inflation based on the
consumer price index
Return of Premium Rider
pays the total amount of premiums paid into the policy in addition to the face
value, as long as the insured dies within a certain time period specified in the policy. It also returns
premiums to the living insured at the end of a specified period of time, as long as the premiums have
been paid.
Automatic Premium Loan Rider
Allows the insurance company to deduct overdue premium from an
insured’s cash value by the end of the grace period if a payment is missed on a life policy
