80. If the life insurance policy is on a child and the parent paying the premium dies, the Insurer will waive the premium until the child reaches a predetermined age. The previous statement describes which of the following riders?
Answer: C
The statement describes the Payor benefit rider.
The Payor benefit rider is applicable in cases where the premium payer, typically a parent, passes away. This rider ensures that the premiums for the child's life insurance policy are waived until the child reaches a specified age.
A) Waiver of premium.
The Waiver of premium rider allows the policyholder to stop paying premiums without losing coverage if they become disabled. However, it does not specifically address the situation where a parent passes away while paying for a child’s policy, making this option incorrect.
B) Guaranteed Insurability.
The Guaranteed Insurability rider allows the insured to purchase additional coverage at specified times without proving insurability, regardless of health changes. This rider does not relate to the payment of premiums upon the parent's death, thus it is not the correct choice.
C) Payor benefit.
The Payor benefit rider is designed specifically for situations where the parent paying the premiums dies, allowing the insurance company to waive premiums until the child reaches a predetermined age. This matches the scenario described in the statement perfectly, making it the correct answer.
D) Family income.
The Family income rider provides a benefit to the family in the case of the insured’s death, typically in the form of monthly payments for a certain period. However, it does not address premium payments for a child’s policy, thereby rendering it incorrect in this context.
Conclusion
The Payor benefit rider is the only option that directly addresses the situation where a parent dies and the insurer waives the premiums for the child's life insurance policy. All other options either relate to different aspects of insurance coverage or do not address the specific situation described in the question. Therefore, the Payor benefit is definitively the correct answer.