Question 78

The return of premium rider refunds the purchase payments to the beneficiary if the insured dies within a specified time of policy issuance.

The return of premium rider ensures that if the insured passes away within a designated period after the policy is issued, the full amount of premium payments made is returned to the beneficiary.

A) other-insured rider

The other-insured rider provides coverage for additional insured individuals under the same policy but does not relate to the return of premium payments upon death. Therefore, this option does not fulfill the requirement presented in the question.

B) disability income rider

The disability income rider offers income replacement benefits if the insured becomes disabled and is unable to work. This rider does not provide any refund of purchase payments upon death, making it an incorrect choice for the question.

C) return of premium rider

The return of premium rider is specifically designed to refund all purchase payments made to the beneficiary if the insured dies within the specified period after policy issuance. This aligns perfectly with the requirement outlined in the question, confirming it as the correct answer.

D) return of cash value rider

The return of cash value rider is associated with the cash value accumulation in permanent life insurance policies. It generally allows for the return of accumulated cash value but does not provide a refund of the purchase payments in the event of death within a specified time frame, thus making it an incorrect option.

Conclusion

The return of premium rider is the only option that directly addresses the scenario of refunding purchase payments to the beneficiary upon the insured's death within a specified period. Other options either provide different types of coverage or benefits unrelated to the refund of premiums, confirming that they do not meet the criteria set forth in the question.