72. If an insurer determines the insured is totally disabled, the policyowner is relieved of paying the policy premiums as long as the disability continues. This statement describes the
Answer: D
This statement describes the waiver of premium rider.
When an insurer determines that the insured is totally disabled, the waiver of premium rider allows the policyowner to stop paying premiums while the disability persists. This provision is designed to protect policyholders from financial burden during times of significant health challenges.
A) double indemnity rider.
The double indemnity rider provides an additional benefit in the event of accidental death, doubling the payout to beneficiaries. It does not relate to premium payment relief during periods of disability, making it incorrect in this context.
B) disability income rider.
The disability income rider provides income payments to the insured if they become disabled and unable to work. While this rider relates to disability, it does not specifically address the waiver of premium payments, thus it is not the correct choice.
C) return of premium rider.
The return of premium rider refunds a portion of the premiums paid if the insured outlives the policy term. This feature is unrelated to the relief of premium payments during a period of total disability, making it an incorrect option.
D) waiver of premium rider.
The waiver of premium rider is explicitly designed to relieve the policyowner from paying premiums during a time when they are totally disabled. This rider ensures that the policy remains in force without financial strain on the insured, which aligns perfectly with the scenario described.
Conclusion
The waiver of premium rider is the correct answer as it directly addresses the situation where an insured is deemed totally disabled and is relieved of premium payments. Other options fail to provide this specific benefit, focusing instead on different types of coverage or benefits related to death or income rather than premium waivers during disability.