South Carolina Life and Health Practice Exam

Which type of life insurance is typically associated with a Payor Benefit rider?

1. Term insurance

2. Whole life insurance

3. Juvenile insurance

4. Universal life insurance

The correct answer is: Juvenile insurance

The Payor Benefit rider is most commonly associated with juvenile insurance. This rider is designed to provide additional financial protection for minors, typically in cases where the premium payer (often a parent or guardian) becomes disabled or passes away. In such situations, the Payor Benefit rider ensures that the premiums for the juvenile's life insurance policy will be waived, allowing the policy to remain in force without the need for further payments. Juvenile insurance is specifically geared towards providing coverage for children, and the inclusion of a Payor Benefit rider serves to protect the child's future insurability and financial security. This feature is especially beneficial for parents, as it alleviates the financial burden of continuing premium payments during a difficult time, ensuring that the child remains covered. Term insurance, whole life insurance, and universal life insurance typically do not include this specific rider geared towards children's policies, as their primary focus is on providing coverage for adults. Thus, the context and intent behind the Payor Benefit rider make juvenile insurance the correct answer for this question.