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
The policyowner is relieved of paying the policy premiums as long as the disability continues, which describes the waiver of premium rider.
A waiver of premium rider allows the policyowner to stop paying premiums while they are totally disabled, ensuring that their coverage remains in force during a period when they may be unable to work and earn income.
A) double indemnity rider.
A double indemnity rider provides a benefit that doubles the payout of the life insurance policy in the event of accidental death. This option does not relate to premium payments during disability, making it incorrect in this context.
B) disability income rider.
A disability income rider offers a monthly income to the insured if they become disabled and are unable to work. While related to disability, it does not relieve the insured of paying policy premiums, therefore it does not answer the question correctly.
C) return of premium rider.
A return of premium rider guarantees that if the insured outlives the policy term, they will receive back all premiums paid. This option does not address the issue of premium payments during a period of total disability, making it an incorrect choice.
D) waiver of premium rider.
The waiver of premium rider specifically states that if the insured is deemed totally disabled, they are exempt from paying premiums for the duration of that disability. This directly aligns with the statement in the question, confirming it as the correct choice.
Conclusion
The waiver of premium rider is the only option that directly addresses the relief from premium payments for a policyowner in the event of total disability. All other options either pertain to different types of benefits or do not address the specific scenario of premium waivers during disability, confirming that option D is definitively correct.