Riders Flashcards
What is a life insurance rider?
A life insurance rider is an additional provision that can be added to a life insurance policy to customize coverage.
True or False: Riders increase the premium of a life insurance policy.
True
What does an accelerated death benefit rider allow the policyholder to do?
It allows the policyholder to access a portion of the death benefit while still alive if diagnosed with a terminal illness.
Fill in the blank: A __________ rider provides coverage for accidental death.
accidental death benefit
What is the purpose of a waiver of premium rider?
It waives the premium payments if the policyholder becomes disabled and unable to work.
Which rider allows for additional coverage without a medical exam?
Guaranteed insurability rider
True or False: A child rider provides coverage for the policyholder’s children.
True
What does a term rider do?
It adds term life insurance coverage to a permanent policy for a specified period.
What is the main benefit of a long-term care rider?
It provides benefits to cover long-term care expenses if the insured requires assistance with daily activities.
Fill in the blank: A __________ rider allows a policyholder to increase their death benefit as their needs change.
return of premium
What is a critical illness rider?
It provides a lump-sum payment if the insured is diagnosed with a covered critical illness.
True or False: A return of premium rider guarantees the return of all premiums paid if the insured outlives the policy term.
True
What type of rider can be used to cover the cost of funeral expenses?
Final expense rider
What is the advantage of a spousal rider?
It provides coverage for the policyholder’s spouse under the same policy.
Fill in the blank: A __________ rider allows policyholders to convert their term insurance to permanent insurance.
conversion
What is the purpose of an accidental dismemberment rider?
It provides benefits if the insured loses a limb or suffers dismemberment due to an accident.
True or False: Riders can only be added to new life insurance policies.
False
What does a family income benefit rider provide?
It provides a monthly income to the insured’s beneficiaries for a specified period after the insured’s death.
What is the main function of a disability income rider?
provides benefits in the form of income in the event the insured becomes totally disabled
Fill in the blank: A __________ rider allows the policyholder to add coverage for an additional child at a lower cost.
child term
What is a double indemnity rider?
The policy beneficiary receives double the face amount ONLY if insured’s death is result of fatal accident.
What is an AD&D policy rider’s principal sum equal to?
Also considered ‘double death benefit’ or ‘double indemnity.’ It is equal to the death benefit on the base life insurance policy. Pays out if insured dies within 90 days of an accident.
Return-of-premium, spousal, and cost of living riders are based on some form of ________ life insurance.
Term
Waiver of premium rider is based more on the actuarial principles of _________ insurance than life insurance.
disability
What is a return-of-premium policy?
Return of premium policy promises to pay the policy face amount plus a sum equal to all or a portion of the premiums paid.
What is a family income rider?
A family income rider is an insurance policy add-on that provides a monthly income benefit to the insured’s family in the event of the policyholder’s death.
True or False: A family income rider pays a lump sum to beneficiaries upon the policyholder’s death.
False
Fill in the blank: A family income rider typically pays a monthly income for a specified period, often _____ years.
10, 15, or 20
True or False
The family income rider is paid out in installments in addition to a lump-sum death benefit, which beneficiaries receive at the end of the family income rider period.
True
