LLQP Life Insurance · Component 2.2 · 30% of the exam
Which rider directly addresses the risk that a disability would make premiums unaffordable and cause the policy to lapse?
- AAccidental death, which pays an additional benefit if the disability results from an accident
- Waiver of premium, which keeps the policy in force by waiving premiums during total disability
- CA term rider, which adds coverage at low cost so the client can afford the base policy
- DA child rider, which protects the children if the disabled parent can no longer support them from earnings during the disability
Correct answer: B) Waiver of premium, which keeps the policy in force by waiving premiums during total disability
Waiver of premium keeps the policy in force during total disability by removing the premium obligation. It is the rider that protects the policy itself, rather than adding a benefit.
Why the other options are wrong
- AAccidental death adds a benefit; it does not protect the policy during disability.
- CA term rider adds coverage, not premium protection.
- DA child rider covers children; it does not address premiums.
Exam tip
Waiver of premium is the rider that keeps the policy itself alive when the insured cannot pay.
Common mistake
Overlooking waiver of premium for a client whose income depends on their ability to work.
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.