37. Which rider assures the premiums will be paid on a juvenile policy until the insured child reaches a specific age?
Answer: B
Payor rider assures the premiums will be paid on a juvenile policy until the insured child reaches a specific age.
The payor rider is designed to ensure that premiums for a juvenile life insurance policy are paid if the responsible adult (the payor) becomes disabled or dies before the insured child reaches a specified age.
A) Guaranteed insurability rider.
The guaranteed insurability rider allows the policyholder to purchase additional coverage at specified times without having to provide evidence of insurability. However, it does not address the payment of premiums in the event of the payor's inability to pay, making it an incorrect choice for this context.
B) Payor rider.
This option is the correct answer as the payor rider specifically provides for the continuation of premium payments on a juvenile policy if the adult responsible for those payments can no longer do so due to disability or death. This rider is essential for ensuring that the child's coverage remains intact until they reach a certain age.
C) Waiver of premium rider.
The waiver of premium rider allows the policyholder to skip premium payments if they become disabled, but it does not apply directly to juvenile policies in the same manner as the payor rider. It is typically associated with the policyholder's incapacity rather than ensuring premium payments for a juvenile insured.
D) Automatic premium loan rider.
The automatic premium loan rider enables the insurer to automatically withdraw from the policy's cash value to cover unpaid premiums. While it addresses premium payment, it does not specifically guarantee that premiums will be paid until a child reaches a certain age, thus making it irrelevant to the question.
Conclusion
The payor rider is distinctly crafted to ensure that premiums for a juvenile life insurance policy are paid despite the payor's potential inability to continue payments due to unforeseen circumstances. All other options fail to address this specific need, confirming the payor rider as the only suitable choice for maintaining coverage until the insured child reaches the designated age.