LLQP Life Insurance · Component 2.2 · 30% of the exam
A grandmother owns a policy insuring her grandson and asks which waiver would protect it if she became disabled. The correct rider is:
- Aa guaranteed insurability rider, which maintains the policy during any disability
- Ba waiver of premium on the life of the grandson, who is the person insured
- a payor waiver, which waives premiums if the person paying becomes disabled or dies
- Dan accidental death rider, which covers the owner as well as the insured person
Correct answer: C) a payor waiver, which waives premiums if the person paying becomes disabled or dies
A payor benefit protects the person paying rather than the life insured, which is what a juvenile policy needs. Premiums are typically waived until the child reaches a stated age.
Why the other options are wrong
- AThat rider allows additional purchases and does not pay premiums.
- BWaiving on the child's life does not address the payor's disability.
- DAn accidental death rider pays a benefit and waives nothing.
Exam tip
Juvenile policy equals payor waiver, not waiver on the child.
Common mistake
Adding a waiver on the insured child rather than on the person paying.
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.