If the life insurance policy is on a child and the parent paying the premium dies, the Insurer will waive the premium until the child reaches a predetermined age. The previous statement describes which of the following riders?

Rationale

Payor benefit

The payor benefit rider ensures that if the parent responsible for paying the premiums on a child's life insurance policy passes away, the insurer will waive future premium payments until the child reaches a specified age. This rider protects the policy's coverage during a difficult time for the family.

A (Waiver of premium.) YOUR ANSWER

The family income rider provides a monthly income benefit to the insured's family in the event of the insured's death, typically for a set period. This rider is not specifically related to waiving premiums for a child's policy, but rather focuses on providing financial support to the family, making it an inappropriate choice for this scenario.

B (Guaranteed Insurability.) YOUR ANSWER

The guaranteed insurability rider allows the policyholder to purchase additional coverage at specified times without providing evidence of insurability. This rider does not pertain to premium payments or the death of a payor, and thus does not apply to the situation described in the question.

C (Payor benefit.) CORRECT

The waiver of premium rider typically applies to situations where the policyholder becomes disabled and is unable to pay premiums. While it involves the waiver of premiums, it does not specifically address the situation of a parent dying while the insured is a child, which is better captured by the payor benefit rider.

Conclusion

The payor benefit rider specifically addresses the situation where the parent of a child life insurance policy passes away, ensuring that premiums are waived until the child reaches a certain age. Other options, such as family income and guaranteed insurability, do not relate directly to premium waivers for child policies, while the waiver of premium rider focuses on disability rather than the parent's death. Thus, the payor benefit rider is the correct choice for this scenario.

If the life insurance policy is on a child and the parent paying the premium dies, the Insurer will waive the premium until the child reaches a predetermined age. The previous statement describes which of the following riders?

Payor benefit

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