A rider waling premlums is called a

Rationale

disability rider.

A rider that provides additional coverage in case of disability is commonly known as a disability rider. This type of rider ensures that the policyholder receives financial benefits if they become disabled and are unable to work.

A (disabllity rider.) CORRECT

A disability rider is designed to offer financial protection in the event that the policyholder becomes disabled and is unable to earn an income. By adding this rider to an insurance policy, the individual can ensure that they have coverage in place to support them during times of disability.

B (term rider.) YOUR ANSWER

A term rider is a type of insurance rider that provides additional coverage for a specified period, usually in conjunction with a base insurance policy. It offers temporary coverage and is not specifically related to disability benefits.

C (cost of insurance rider.) YOUR ANSWER

A cost of insurance rider is an option that allows the policyholder to cover the expenses associated with the insurance policy, such as administrative fees and mortality costs. It is not directly related to providing disability benefits.

D (cost of living rider.) YOUR ANSWER

A cost of living rider is designed to adjust the benefits of an insurance policy to keep pace with inflation or changes in the cost of living. It ensures that the purchasing power of the policy benefits remains consistent over time.

Conclusion

In insurance terminology, a rider that offers coverage for disability situations is commonly referred to as a disability rider. This additional provision ensures that policyholders are safeguarded financially if they experience a disability that impacts their ability to work and earn income.

A rider waling premlums is called a

disability rider.

Related Questions

Related Quizzes

How familiar were you with this question?

Report an Issue

Rate this Practice Test