LLQP Life Insurance · Component 2.2 · 30% of the exam
A child covered by a child rider is approaching the age at which the rider ends. The usual provision allows the child to:
- Acontinue the rider indefinitely at the same premium the parent has been paying
- Btake over the parent's base policy as its new owner and life insured
- convert to an individual policy without evidence, within a stated multiple of the rider amount
- Dclaim a refund of the rider premiums the parent paid over the years
Correct answer: C) convert to an individual policy without evidence, within a stated multiple of the rider amount
The conversion right is often the most valuable part of a child rider, guaranteeing coverage regardless of the child's health. The window is limited, so the agent should contact the family in advance.
Why the other options are wrong
- AThe rider ends at the stated age rather than continuing.
- BA child cannot take over the parent's contract or its insured life.
- DRider premiums are not refunded when coverage ends.
Exam tip
The child rider's conversion right is its real value; diarize the age.
Common mistake
Letting a child rider expire without exercising the conversion.
What this tests
CISRO competency component 2.2 — Analyze the available products that meet the client's needs — which is weighted at 30% of the Life Insurance module. Written against the published curriculum.
More from component 2
- A client has a need lasting about twenty years and compares a ten-year and a twenty-year term policy. The main point to explain is that:
- A client exercises the conversion privilege on his term policy. The permanent premium will be based on:
- A client notices that a small policy costs proportionately more per unit of coverage than a larger one. The explanation is that:
- A client wants to pay monthly rather than annually. The agent should explain that monthly payment:
- A client asks why dividends from her participating policy are not taxed like interest from a bank. The reason is that a dividend is:
- A universal life policyholder is choosing among the investment options inside her policy. She should understand that:
Practice the whole Life Insurance module
Timed sets weighted like the exam, and review of every question you miss. Free to start.