Question 91

The insurer will waive the premium until the child reaches a predetermined age.

This statement describes the payer benefit rider, which ensures that if the parent who is responsible for paying the premiums on a child's life insurance policy passes away, the insurer waives the premium payments until the child reaches a specified age.

A) Family income

The family income rider provides a monthly income benefit to the insured's family for a specified period following the death of the insured. It does not relate to waiving premiums in the event of the policyholder's death, thus making it incorrect in this context.

B) Payer benefit

This option accurately describes the scenario presented. The payer benefit rider is specifically designed to waive premium payments if the parent, who pays for the child's policy, dies, ensuring that the child’s coverage remains intact until they reach a certain age.

C) Waiver of premium

While the waiver of premium rider does provide benefits in certain situations, it typically applies to the insured's inability to pay due to disability or other specified conditions, not specifically to the death of the premium payer concerning a child's policy.

D) Guaranteed insurability

The guaranteed insurability rider allows the insured to purchase additional insurance coverage at specified times without providing evidence of insurability. This rider does not address premium payments or the scenario of a parent's death, making it irrelevant to the question.

Conclusion

The payer benefit rider is the correct choice because it directly relates to the situation where a parent’s death leads to the waiver of premium payments on a child’s life insurance policy. All other options do not address this specific scenario, either focusing on different benefits or conditions that do not apply in this context.