Question 36

Return of premium rider refunds 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 the defined period after the policy is issued, the total premiums paid are refunded to the beneficiary.

A) other-insured rider

The other-insured rider is typically designed to provide coverage for an additional insured person under the same policy. It does not relate to the refund of purchase payments in the event of the original insured's death.

B) disability income rider

The disability income rider offers benefits in the form of income if the insured becomes disabled. It does not provide any refunds of purchase payments to beneficiaries upon the death of the insured.

C) return of premium rider

The return of premium rider is specifically designed to refund the premiums paid if the insured dies within a certain timeframe after the policy is issued. This makes it the correct option, as it directly addresses the question regarding refunds to beneficiaries.

D) return of cash value rider

The return of cash value rider allows for the payout of the accumulated cash value of the policy upon termination or death. However, it does not refund the purchase payments made, making it incorrect for the context of this question.

Conclusion

The return of premium rider is the only option that directly addresses the scenario where the insured dies within a specified time and refunds the purchase payments to the beneficiary. Other options either provide different types of coverage or benefits that do not relate to the refund of premiums, confirming that they do not meet the criteria set by the question.