Question 42

The insurer will make the payments until the insured juvenile reaches a specified age - usually twenty-one or twenty-five.

The payor rider on a juvenile life policy ensures that if the payor dies or becomes disabled, the insurer will cover all future premium payments until the juvenile reaches the designated age, typically twenty-one or twenty-five.

A) insurer will make all future policy payments.

This option is partially correct but lacks specificity. While the insurer will indeed make future payments, it is important to note that this coverage is contingent upon the juvenile reaching a specified age, making this statement too broad and misleading.

B) insured's estate will make the premium payments.

This option is incorrect because the payor rider is designed specifically to relieve the financial burden from the estate of the payor. Instead, the insurer takes on the responsibility of making the premium payments should the payor die or become disabled.

C) insurer will lend money to keep the policy in force.

This option is incorrect as the payor rider does not involve lending money. Instead, it stipulates that the insurer will directly handle the premium payments, ensuring the policy remains active without requiring loans.

D) insurer will make the payments until the insured juvenile reaches a specified age - usually twenty-one or twenty-five.

This statement accurately reflects the function of the payor rider, which guarantees that the insurer will cover premium payments until the juvenile reaches the specified age, ensuring the policy remains enforced during that critical time.

Conclusion

The correct answer, D, clearly explains the role of the payor rider in protecting the juvenile's policy by ensuring that premium payments are maintained until a certain age. The other options fail to capture this essential function or misrepresent the terms of the payor rider, highlighting why D is the definitive choice.