LLQP Life Insurance · Component 2.2 · 30% of the exam
A waiver of premium rider on a term policy typically ends at:
- A stated age, commonly 60 or 65, after which no new disability claim can begin
- BThe policy's expiry only, since the rider forms part of the contract and continues for as long as the coverage itself remains in force
- CNever, since waiver of premium is a permanent feature that protects the policy for the insured's whole life
- DThe end of the first year, after which the insurer reassesses whether the rider should be continued at renewal
Correct answer: A) A stated age, commonly 60 or 65, after which no new disability claim can begin
Waiver riders have their own expiry age tied to working life. A disability that starts after that age is not covered. Reviews should note when the rider ends relative to the policy.
Why the other options are wrong
- BThe rider often expires before the policy.
- CRiders are not perpetual.
- DOne year is not a standard rider expiry.
Exam tip
Waiver of premium usually expires at 60–65, earlier than the policy. Check the rider's own dates.
Common mistake
Assuming waiver protects premiums for the policy's whole life.
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.