South Carolina Life and Health Practice Exam

What type of rider waives the premium on a child's life insurance policy if the policyholder dies?

1. Extended coverage rider

2. Payor benefit

3. Child rider

4. Accidental death rider

The correct answer is: Payor benefit

The payor benefit rider is specifically designed to waive the premium payments on a child's life insurance policy if the policyholder passes away. This feature serves as a safeguard, ensuring that the coverage remains in force despite the financial burden following the death of the parent or guardian. Essentially, it protects the child's life insurance policy, allowing it to continue without interruption during a difficult time. This rider is particularly useful for families who want to ensure that their children's policies remain active, providing peace of mind in the event the main bill payer experiences an untimely death. Therefore, when examining the features and functions of life insurance policies, the payor benefit rider stands out as the solution for maintaining coverage for minors in the unfortunate circumstance of a parent's death.