Which insurance rider is designed to pay premiums on a child's policy if the parent dies?

Rationale

Payor benefit.

The payor benefit rider is specifically designed to cover the premiums of a child's life insurance policy in the event that the parent or guardian passes away. This ensures that the child’s policy remains active and continues to provide protection without the financial burden on the surviving parent.

A (Payor benefit.) CORRECT

This rider directly addresses the scenario where the parent dies, ensuring that the premiums for the child's policy are paid. By alleviating the financial responsibility from the surviving parent, the child’s coverage continues uninterrupted, providing peace of mind.

B (Cost of living benefit.) YOUR ANSWER

This rider adjusts the death benefit of a policy to account for inflation over time. However, it does not address premium payments for a child's policy in the absence of the parent. Thus, it does not serve the purpose of maintaining coverage after a parent's death.

C (Accidental death benefit.) YOUR ANSWER

The accidental death benefit rider provides an additional payout if the insured dies due to an accident. While it may increase the overall coverage amount, it does nothing to ensure that the premiums for the child's policy are paid after the parent's death.

D (Guaranteed insurability benefit.) YOUR ANSWER

This rider allows the policyholder to purchase additional coverage in the future without needing to provide evidence of insurability. Although it offers flexibility for future needs, it does not assist with premium payments after the parent's demise.

Conclusion

The payor benefit rider is the only option that directly addresses the financial implications of a parent's death in relation to a child's life insurance policy. It ensures that the premiums continue to be paid, thus maintaining coverage for the child. Other riders, while beneficial in their own right, do not fulfill this specific need, making the payor benefit the essential choice for safeguarding a child's policy in such circumstances.

Which insurance rider is designed to pay premiums on a child's policy if the parent dies?

Payor benefit.

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