South Carolina Life and Health Practice Exam

Which of the following best describes a juvenile insurance policy?

1. A policy covering only adults

2. A policy designed for minors with a Payor Benefit rider

3. A term life insurance for short durations

4. A universal life policy for children

The correct answer is: A policy designed for minors with a Payor Benefit rider

A juvenile insurance policy is specifically designed to provide life insurance coverage for minors. The defining feature of such policies is that they typically include a Payor Benefit rider, which ensures that if the premium payer (often the child's parent or guardian) becomes unable to pay due to death or disability, the policy remains in force without interruption. This is particularly important as it secures the child's insurance coverage for the future, often accumulating cash value and securing insurability. While some might think of universal or term life insurance features concerning children, those details aren’t representative of juvenile policies as a whole. Instead, the essence of a juvenile policy lies in its focus on providing coverage for minors, often with added riders and benefits designed to accommodate the unique needs of young insureds and their families. Hence, the correct answer encapsulates the primary characteristics and intent of a juvenile insurance policy accurately.