Question 22

Family Term insurance rider provides a death benefit if the spouse of the insured dies.

The Family Term insurance rider is designed specifically to provide a death benefit to the insured's beneficiaries in the event of the death of the spouse. This rider enhances the primary life insurance policy by offering additional coverage for family members.

A) Accelerated death benefit rider.

The Accelerated death benefit rider allows the insured to receive a portion of the death benefit while still alive if they are diagnosed with a terminal illness. However, it does not provide a death benefit for the spouse of the insured, making it irrelevant to the question.

B) Family Term insurance rider.

The Family Term insurance rider is the correct choice as it specifically covers the life of the spouse and ensures that a death benefit is paid out in the event of their death. This rider extends the insurance coverage to include family members, aligning perfectly with the question's requirements.

C) Guaranteed insurability rider.

The Guaranteed insurability rider allows the policyholder to purchase additional insurance coverage without undergoing medical underwriting at specified intervals. While it provides flexibility for future coverage, it does not provide any death benefit for the spouse of the insured.

D) Long-term care insurance rider.

The Long-term care insurance rider offers coverage for long-term care services but does not provide a death benefit. This rider is focused on covering health-related expenses rather than offering death benefits to beneficiaries, thus making it irrelevant to the question.

Conclusion

The Family Term insurance rider is the only option that directly addresses the need for a death benefit if the spouse of the insured dies. Other options either focus on different types of benefits or do not provide any death benefit at all, clarifying why B is the definitive correct answer.