Tennessee Insurance Practice Exam

Which rider is attached to a life insurance policy that ensures premium payments are covered if the insured becomes disabled?

1. Cost of Living Rider

2. Return of Premium Rider

3. Accidental Death Benefit

4. Waiver of Premium

The correct answer is: Waiver of Premium

The rider that is attached to a life insurance policy to ensure premium payments are covered if the insured becomes disabled is the Waiver of Premium. This rider provides a significant benefit by allowing the policyholder to skip premium payments for a specified period of time while they are unable to work due to a disability. The coverage remains in force even though the premiums are not being paid, ensuring that the insured remains protected without financial strain during a challenging time. In contrast, the Cost of Living Rider typically adjusts the death benefit to keep pace with inflation, the Return of Premium Rider offers a refund of the premiums paid if the insured outlives the policy, and the Accidental Death Benefit provides additional coverage in the event of death caused by an accident. None of these options address the situation of waiving premiums during a period of disability, which is the purpose of the Waiver of Premium rider.