Question 11

This statement describes the waiver of premium rider.

The waiver of premium rider relieves the policyholder from paying premiums if they are deemed totally disabled for a specified period. This feature is beneficial as it ensures that the policy remains in force even when the policyholder is unable to work.

A) double indemnity rider.

The double indemnity rider provides for a higher payout in the event of accidental death, which is unrelated to the issue of premium payments during a period of disability. Therefore, this option does not apply to the described scenario.

B) disability income rider.

The disability income rider provides a stream of income if the insured becomes disabled, but it does not specifically address the waiver of premium payments. Thus, while related to disability, it does not fulfill the criteria set forth in the statement.

C) return of premium rider.

The return of premium rider ensures that if the policyholder outlives the policy term, they receive a refund of the premiums paid. This concept is distinct from the waiver of premium rider, which specifically pertains to premium payment relief during periods of total disability.

D) waiver of premium rider.

This option directly addresses the situation where an insurer determines that the insured is totally disabled, resulting in the suspension of premium payments for the duration of the disability. This rider is designed to protect the policyholder by keeping the insurance coverage active without the need for premium payments during challenging times.

Conclusion

The waiver of premium rider is clearly the correct answer, as it specifically addresses the relief from premium payments during periods of total disability. In contrast, the other options—double indemnity, disability income, and return of premium riders—do not provide the same benefit of suspending premium obligations under the circumstances described.