New York State Life Insurance Exam Questions 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: D
Rationale: The statement describes a scenario where the premium on a child's life insurance policy is waived if the paying parent dies, which aligns with the Payor Benefit rider. This rider ensures that premiums are covered in the event of the payor's death, allowing the policy to remain in force until the child reaches a specified age.
Option A, Family Income, provides benefits to beneficiaries in case of the policyholder's death but does not address premium payments. Option B, Guaranteed Insurability, allows for future coverage without medical underwriting but does not relate to premium waivers. Option C, Waiver of Premium, typically applies to the policyholder’s inability to pay due to disability, not the death of a payor.
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