Question 43

The payor rider ensures premiums are paid on a juvenile policy until the insured child reaches a specified age.

The payor rider is specifically designed to ensure that the premiums for a juvenile life insurance policy are covered until the child reaches a certain age, providing financial protection in case the payor becomes unable to make the payments.

A) Guaranteed insurability rider.

The guaranteed insurability rider allows the insured to purchase additional coverage at specified times without providing evidence of insurability. However, it does not address the payment of premiums, making it irrelevant to the question.

B) Payor rider.

The payor rider is the correct choice as it ensures that if the adult payor (usually a parent) becomes unable to pay the premiums due to death or disability, the insurance company will waive the premiums until the juvenile reaches a predetermined age, ensuring the policy remains in force.

C) Waiver of premium rider.

The waiver of premium rider allows the policyholder to stop making premium payments if they become disabled. However, this rider typically pertains to the policyholder rather than specifically addressing juvenile policies, making it less relevant than the payor rider for this question.

D) Automatic premium loan rider.

The automatic premium loan rider allows an insurer to automatically use the cash value of the policy to pay overdue premiums. While this can prevent lapse in coverage, it does not guarantee that premiums will be paid until a specific age for a juvenile policy.

Conclusion

The payor rider is uniquely suited to the context of juvenile policies as it ensures premium payments are maintained until the child reaches a certain age, thereby protecting the policy's integrity. Other options either do not relate directly to the payment of premiums for juvenile policies or serve different functions, confirming the payor rider as the definitive correct answer.