Pennsylvania Life and Health Insurance Exam Practice Question
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?
Correct Answer: B
Rationale: The statement describes a situation where the insurer waives premiums for a child’s policy if the premium-paying parent dies, which is characteristic of the **Payer Benefit Rider**. This rider ensures that the policy remains in force without premium payments during a specified period.
Option A, **Family Income**, provides income benefits to the family in the event of the policyholder's death, not premium waivers.
Option C, **Waiver of Premium**, allows the policyholder to stop paying premiums due to disability, not specifically related to a parent’s death.
Option D, **Guaranteed Insurability**, allows for future purchases of insurance without additional health assessments, unrelated to premium payment waivers.
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