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.
In the scenario provided, when a parent paying the premium for a child's life insurance policy dies, the insurer waives the premiums until the child reaches a predetermined age. This situation is specifically covered by the Payor Benefit rider.
A) Waiver of premium.
The Waiver of Premium rider allows the policyholder to stop paying premiums if they become disabled or unable to work. However, it does not specifically pertain to the situation of a parent dying while paying premiums for a child's policy. Therefore, this option is incorrect in this context.
B) Guaranteed Insurability.
The Guaranteed Insurability rider permits the insured to purchase additional coverage at certain times without providing proof of insurability. This rider does not address the situation of premium payments being waived due to the parent's death, making this option incorrect.
C) Payor benefit.
The Payor Benefit rider is designed specifically for scenarios like the one described, where if the parent (the payor) dies, the insurer waives the premiums until the child reaches a specified age. This directly aligns with the statement provided, making this option correct.
D) Family income.
The Family Income rider provides additional coverage to ensure that the family receives a certain income for a specified period in the event of the insured's death. This option does not relate to the waiving of premiums due to the death of the parent, thus it is incorrect.
Conclusion
The Payor Benefit rider is the correct answer as it directly addresses the scenario where premiums are waived upon the death of the policy's payor. Other options fail to relate specifically to the context of premium payments being waived due to the parent's demise, highlighting the unique function of the Payor Benefit rider in protecting the child's insurance coverage.