New Jersey Life Insurance Exam Practice Question
Which of the following statements is TRUE regarding a Waiver of Premium Rider?
Correct Answer: A
Rationale: A Waiver of Premium Rider allows the insured to stop paying premiums due to disability, while maintaining the policy's original terms. Therefore, option A accurately states that there will be no changes to rates, benefits, or options aside from the elimination of premium payments.
Option B is incorrect because the policy's cash value continues to grow at the same rate; the insured's inability to pay premiums does not affect this growth. Option C is misleading; the death benefit remains intact, and unpaid premiums do not reduce it. Option D is false as eligibility for Accelerated Death Benefits is not automatically linked to a Waiver of Premium Rider.
Unlock All Questions
Subscribe to Premium for full access to all practice questions, detailed rationales, and performance tracking.
Subscribe Now