42. A client purchases a $250,000 term policy for a $300 annual premium and elects to pay an additional $150 per year to recover the premium if the insured does not die during the policy term. Which of the following riders was added to the policy?
Answer: B
Return of Premium
The rider added to the policy is a Return of Premium rider, which allows the insured to recover the paid premiums if they do not pass away during the policy term. This feature provides a safety net for the policyholder, ensuring that their investment in the insurance policy is not lost if they outlive the term.
A) Long-Term Care
The Long-Term Care rider is designed to provide benefits if the insured requires long-term care services, which is not applicable in this scenario. This option does not pertain to recovering premiums and is therefore incorrect.
B) Return of Premium
This option is correct because the client chose to pay an additional $150 per year specifically to recover the premiums paid if they do not die during the policy term. This feature aligns perfectly with the definition of a Return of Premium rider.
C) Waiver of Premium
The Waiver of Premium rider allows the policyholder to stop paying premiums if they become disabled; however, it does not involve recovering premiums paid. Therefore, this option does not fit the context of the question.
D) Guaranteed Insurability
The Guaranteed Insurability rider allows the policyholder to purchase additional coverage without providing evidence of insurability at specified times. This does not relate to the recovery of premiums, making this option incorrect.
Conclusion
The Return of Premium rider is clearly the correct choice, as it directly addresses the client's intention to recover premiums paid if they survive the term. All other options either serve different purposes or do not align with the specific feature of recovering premiums, underscoring why B is the only appropriate selection.