Difficulty: Hard

Average Score: 25%

Which of the following provides a death benefit if the spouse of the insured dies?

Rationale

Family Term insurance rider provides a death benefit if the spouse of the insured dies.

This type of rider extends coverage to the spouse, ensuring that a death benefit is paid out if the spouse passes away, thereby providing financial support to the insured individual.

A (Guaranteed insurability rider.) YOUR ANSWER

The guaranteed insurability rider allows the insured to purchase additional life insurance coverage at specific times without providing evidence of insurability. However, it does not provide a death benefit upon the death of the spouse; rather, it focuses on the insured’s ability to increase their own coverage.

B (Family Term insurance rider.) CORRECT

This rider explicitly covers the spouse and allows for a death benefit to be paid out if the spouse dies. It is designed to offer additional protection for families, ensuring that the insured has financial support in the event of their spouse's untimely death.

C (Long-term care insurance rider.) YOUR ANSWER

The long-term care insurance rider provides coverage for long-term care services, such as nursing home or in-home care. While it aids in managing health-related expenses, it does not pay out a death benefit related to the spouse's death.

D (Accelerated death benefit rider.) YOUR ANSWER

The accelerated death benefit rider allows the insured to access a portion of the death benefit while still alive, typically in cases of terminal illness. It does not provide a death benefit to the spouse but rather focuses on financial support for the insured in critical situations.

Conclusion

The Family Term insurance rider is specifically designed to provide a death benefit to the insured in the event of the spouse's death, making it a vital financial security option for families. Other riders, while beneficial in their own rights, do not serve the same purpose of offering death benefits tied to a spouse's demise. Understanding these distinctions is crucial for selecting the right insurance products that meet family needs.

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