Tennessee Insurance Practice Exam

Which life insurance rider typically appears on a juvenile life insurance policy?

1. Payor benefit rider

2. Accidental death benefit rider

3. Waiver of premium rider

4. Convertible rider

The correct answer is: Payor benefit rider

The payor benefit rider is particularly relevant for juvenile life insurance policies because it ensures that if the adult payor (usually a parent or guardian) becomes disabled or dies, the premiums for the juvenile policy will continue to be paid. This rider provides financial protection and peace of mind, ensuring that the life insurance coverage for the child remains in force despite the unfortunate circumstances affecting the payor. In the context of juvenile policies, this rider is essential because it addresses a distinct concern: the dependency on the adult to maintain the policy. Without this rider, if something were to happen to the payor, the policy could lapse due to unpaid premiums, leaving the child without coverage. Other riders, while they may have their own importance, do not specifically target the unique scenario of maintaining coverage for juvenile policies dependent on adult payors. The accidental death benefit rider focuses on providing additional benefits in the event of an accidental death but does not address the premium payment issue. The waiver of premium rider allows premiums to be waived under certain conditions, typically for the insured, rather than focusing on the payor. The convertible rider offers the option to convert a policy to a different type of coverage but is not specifically tailored to juvenile policies.