41. 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: D
The statement describes the Payor Benefit rider.
The Payor Benefit rider ensures that if the parent who pays the premium for the child’s life insurance policy passes away, the insurer will waive the premium payments until the child reaches a specified age.
A) Family income
The Family Income rider provides a monthly income benefit to the family for a specified period if the insured dies, but it does not address the waiver of premiums for a child's policy. Thus, it is incorrect in this context.
B) Guaranteed insurability
The Guaranteed Insurability rider allows the policyholder to purchase additional insurance coverage at specified times without providing evidence of insurability, but it does not relate to waiving premiums upon the death of the premium payer. Therefore, this option is also incorrect.
C) Waiver of premium
While the Waiver of Premium rider allows for premiums to be waived under certain circumstances, it is not specifically tailored to the situation where a parent dies and the child is the insured. Hence, this option does not accurately describe the scenario presented.
D) Payor benefit
The Payor Benefit rider specifically addresses the situation where the premium payer (the parent) dies, allowing the insurer to waive the premium payments for the child’s policy until the child reaches a predetermined age. This directly correlates with the scenario described in the statement.
Conclusion
The Payor Benefit rider is the correct choice as it specifically addresses the waiver of premiums in the event of the premium payer's death, which directly aligns with the provided statement. All other options do not accurately reflect this specific situation and therefore are not applicable.