LLQP Life Insurance · Component 2.2 · 30% of the exam
A payor waiver rider on a juvenile policy typically continues to waive premiums:
- Auntil the payor recovers or the child's policy is surrendered, whichever is later
- Bonly for the twelve months following the payor's disability or death
- Cfor the whole of the insured child's life once a claim has been admitted
- until the child reaches a stated age set out in the rider
Correct answer: D) until the child reaches a stated age set out in the rider
The benefit carries the policy through the years the child could not pay, usually to an age in the early twenties. After that the young adult takes over the premiums on a policy already in force.
Why the other options are wrong
- AThe rider's terms run to a stated age of the child.
- BThe protection extends well beyond a single year.
- CThe waiver ends at the stated age rather than continuing for life.
Exam tip
Payor waiver runs to a stated age of the child, not for life.
Common mistake
Telling a family the premiums will be waived permanently.
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.