New York State Life Insurance Exam Questions Practice Question
Which of the following is TRUE of a payor benefit rider?
Correct Answer: A
Rationale: A payor benefit rider is designed specifically to protect juvenile policies by waiving premiums if the policyowner becomes totally disabled or dies, ensuring that the child's coverage remains intact.
Option B is incorrect as it describes a disability income rider, which provides income to the policyowner, not a benefit specific to juvenile policies.
Option C is misleading; while it mentions premium waivers for disability, it does not specify that it applies to the policyowner, which is essential in the context of juvenile policies.
Option D is inaccurate because it suggests an increase in policy value upon the policyowner's death, which is not a feature of a payor benefit rider.
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