Washington Life Producer Practice Exam

A rider that assures premiums will be paid on a juvenile policy until the child reaches a specific age is called a(n)?

1. Term rider

2. Payor rider

3. Surrender rider

4. Guaranteed insurability rider

The correct answer is: Payor rider

A rider that ensures premiums for a juvenile policy will be covered until the child reaches a specific age is known as a payor rider. This rider is designed to alleviate the financial burden of premium payments in the event that the payor, often a parent or guardian, becomes incapacitated or dies. The payor rider guarantees that the premium payments will still be made, ensuring that the policy remains in force for the child's benefit until they reach a predetermined age, usually between 18 and 25. This type of rider is particularly beneficial for juvenile policies, which are purchased on a child's life, as it protects the policy's value and the investment made by the payor. In contrast, the other riders mentioned serve different purposes. For example, a term rider typically adds temporary coverage to a policy, a surrender rider allows a policyholder to withdraw cash values under specific conditions, and a guaranteed insurability rider provides the policyholder the option to purchase additional coverage without undergoing further medical underwriting. Each of these riders addresses different aspects of life insurance needs but does not specifically focus on ensuring that premiums are paid for a juvenile policy.