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Life and Health Unit 5

Terms in this set (15)

Which of the following terms best describes something that is used to add benefits to a life insurance policy and customize the coverage to an insured's particular needs?

A) a life insurance addition
B) a rider
C) a premium
D) a contract
B) a rider
All of the following statements about the waiver of premium rider are true EXCEPT

A) with the waiver of premium rider, at first, insureds are considered disabled if they are unable to work at their present job
B) with the waiver of premium rider, if an insured recovers and returns to work after a disability they must begin paying policy premiums again
C) with the waiver of premium rider, premiums are reduced by 80% during any period that the insured is disabled
D) with the waiver of premium rider, if the insured becomes permanently disabled before the insured's working years end, premiums will continue to be waived for life
C) with the waiver of premium rider, premiums are reduced by 80% during any period that the insured is disabled
Which of the following riders allows insureds who are terminally ill to obtain benefits from insurance policies prior to their death?

A) accelerated benefits rider
B) payor rider
C) disability income rider
D) waiver of premium rider
A) accelerated benefits rider
For an accidental death benefit rider to be payable the insured must die (due to injury from the accident) within how many days of the accident?

A) 30
B) 60
C) 90
D) 180
C) 90
Which rider lets insured buy additional coverage without proof of insurability in order to keep pace with inflation?

A) guaranteed insurability
B) accidental death and disability rider
C) cost of living
D) payor rider
C) cost of living
Tammy has a $100,00 life insurance policy with a double indemnity rider. Tammy is killed in an automobile accident. How much will the policy pay?

A) $100,000
B) $180,000
C) $200,000
D) $400,000
C) $200,000

The policy will pay a death benefit of $200,000. The extra benefit is usually the same amount as the policy, so it doubles the death benefit
Kumar has a life insurance policy with a rider that will pay him $1,000 per month if he is totally and permanently disabled. Which type of rider does he have?

A) waiver of premium rider
B) accidental death and disability rider
C) disability income rider
D) payor rider
C) disability income rider

Kumar has a disability income rider because it is providing him money to help with bills during the period that he is disabled
Paul has a life insurance policy on his son for which he pays all the premiums. A rider to this policy states that if Paul becomes permanently and totally disabled, the premiums will be paid until his son reaches age 21, at which point his son will take over the premium payments. Which type of rider does he have?

A) Waiver of premium rider
B) Accidental death and disability rider
C) Disability income rider
D) Payor rider
D) Payor rider

This is a payor rider because it provides for a waiver of premiums on the son's coverage if they payor (Paul) becomes disabled
Which of the following riders allows for an advance of the death benefit if the insured is confined to a nursing home or cannot perform the activities of daily living?

A) Guaranteed insurability rider
B) Accidental death or dismemberment rider
C) Return of premium rider
D) Long-term care rider
D) Long-term care rider

The payment advance reduces the death benefit payable upon death
Alberta is concerned that if she became totally and permanently disabled, she would not be able to pay her life insurance premiums and the policy will lapse. Which type of rider should she consider to protect against this possibility?

A) Waiver of premium rider
B) Accidental death and disability rider
C) Disability income rider
D) Payor rider
A) Waiver of premium rider

A waiver of premium rider will waive the premiums on Alberta's policy if she becomes disabled
Which of the following riders is increasing term insurance that always equals the total premiums paid during the time the policy is in effect?

A) Guaranteed insurability
B) Return of premium
C) Accidental death
D) Waiver of premium
B) Return of premium

A return of premium rider is increasing term insurance that always equals the total premiums paid during the time the policy is in effect
Which of the following is a waiver of all future premiums in the event of total and permanent disability?

A) Guaranteed insurability
B) Return of premium
C) Accidental death
D) Waiver of premium
D) Waiver of premium

Waiver of premium is waiver of all future premiums in the event of total and permanent disability
Which of the following is a guarantee that at specified ages, dates, or events, the insured may buy additional insurance without a medical exam?

A) Guaranteed insurability
B) Return of premium
C) Accidental death
D) waiver of premium
A) Guaranteed insurability

Guaranteed insurability is a guarantee that at specified ages, dates, or events, the insured may buy additional insurance without a medical exam
The amount of money paid by an accidental death benefit rider if the insured ides in an accident is referred to as the

A) principal sum
B) principle sum
C) capital sum
D) capitol sum
A) principal sum

The amount of money paid by an ADB rider if the insured dies in an accident is referred to as the principal sum
The amount of money paid by an accidental death and dismemberment rider if the insured is disabled in an accident is referred to as the

A) principal sum
B) principle sum
C) capital sum
D) capitol sum
C) capital sum

The amount of money paid by an AD&D rider if the insured is disabled in an accident is referred to as the capital sum
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