Tennessee Insurance Practice Exam

Which additional coverage can be included in a Whole Life policy?

1. Level Term Rider

2. Decreasing Term Rider

3. Accidental Death Benefit Rider

4. Renewable Term Rider

The correct answer is: Decreasing Term Rider

The inclusion of an Accidental Death Benefit Rider in a Whole Life policy is significant because it provides an additional layer of protection beyond the regular death benefit. This rider pays an extra benefit to the beneficiaries if the insured's death is a result of an accident, thereby increasing the overall payout and offering peace of mind to the policyholder and their loved ones. Other options like the Level Term Rider, Decreasing Term Rider, and Renewable Term Rider are typically associated with term life insurance products, which are structured differently from Whole Life policies. Whole Life insurance focuses on providing lifelong coverage with a guaranteed death benefit and often includes a cash value component. The Accidental Death Benefit Rider aligns well with the goals of Whole Life insurance by enhancing its protective features without altering the foundational aspects of the policy itself.