Question 9

Payor benefit guarantees continued coverage for a minor insured.

The payor benefit feature ensures that if the policyowner becomes totally disabled, the insurance coverage remains in force for the minor insured without the need for premium payments.

A) Conversion privilege

The conversion privilege allows the insured to convert a term policy to a permanent policy without evidence of insurability, but it does not provide continued coverage in the event the policyowner becomes disabled. Therefore, this option does not address the scenario presented in the question.

B) Payor benefit

The payor benefit specifically addresses the situation in which the policyowner becomes totally disabled, thereby ensuring that premiums are waived, and coverage continues for the minor. This feature is designed to protect minors from losing their insurance due to the financial inability of the policyowner resulting from disability.

C) Disability Income rider

The disability income rider provides monthly income payments to the policyowner if they become disabled, but it does not ensure that the minor's coverage will remain active. This option focuses on the policyowner's financial support rather than the continuity of the minor's coverage.

D) Guaranteed Insurability rider

The guaranteed insurability rider allows the insured to purchase additional coverage at specified times without medical underwriting, but it does not provide ongoing coverage if the policyowner becomes disabled. Thus, this option does not fulfill the requirement of ensuring continued coverage for the minor.

Conclusion

The payor benefit is the only feature that directly ensures continued coverage for a minor insured when the policyowner becomes totally disabled, making it the correct answer. All other options either relate to different aspects of insurance policies or do not provide the necessary coverage for the minor in this specific scenario.