Question 4

A payor benefit rider waives policy premiums if the insured becomes totally disabled.

A payor benefit rider is designed to ensure that the policy remains in force by waiving premiums in the event of total disability of the insured. This feature provides financial protection and peace of mind to the policyowner during challenging times.

A) Which of the following is TRUE of a payor benefit rider?

This option is simply a repetition of the question and does not provide any information regarding the characteristics or benefits of a payor benefit rider. Therefore, it cannot be considered correct or relevant.

B) Which of the following is TRUE of a payor benefit rider?

This option is also a repetition of the question and does not specify any factual information about the payor benefit rider. However, since this was indicated as the correct answer, it implies that it is aligned with the phrasing of the question, though it lacks substance.

C) Pays a monthly income to the policyowner if the insured is totally disabled.

This option incorrectly describes a feature typically associated with disability income insurance rather than a payor benefit rider. A payor benefit rider specifically waives premiums rather than providing a monthly income.

D) Waives policy premiums if the insured becomes totally disabled.

This option accurately describes the primary function of a payor benefit rider, which is to waive the premiums of a policy if the insured becomes totally disabled. Thus, this option is a correct statement about the rider's benefits.

Conclusion

The correct answer, while being a repetition of the question, indicates that Option D is fundamentally true about a payor benefit rider; it waives premiums during total disability. Options A and B do not contribute meaningfully to the understanding of the rider, and Option C incorrectly describes a feature not related to this specific rider. Therefore, D is the most accurate statement regarding what a payor benefit rider does.