Question 77

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 designated period after the policy is issued, the total purchase payments made are refunded to the beneficiary.

A) other-insured rider

The other-insured rider provides additional coverage for another individual under the primary policy but does not relate to the refund of purchase payments upon the death of the insured. Therefore, it is not applicable in this context.

B) disability income rider

The disability income rider offers income replacement benefits if the insured becomes disabled and cannot work, but it does not provide any refund of purchase payments to a beneficiary in the event of the insured's death. Thus, it is not the correct option.

C) return of premium rider

The return of premium rider is specifically designed to refund the total purchase payments to the beneficiary if the insured dies within the specified time frame after the policy is issued. This option directly addresses the question and is the correct answer.

D) return of cash value rider

The return of cash value rider allows the policyholder to receive the cash value of the policy upon cancellation, but it does not provide a refund of purchase payments to beneficiaries if the insured dies. Consequently, it is not the right choice.

Conclusion

The return of premium rider is the only option that directly aligns with the scenario of refunding purchase payments to the beneficiary upon the insured's death within a specified period. All other options either serve different purposes or do not address the refund requirement outlined in the question, confirming that option C is definitively correct.