A parent purchases a whole life policy on a 9-year-old child and adds a Payor Benefit rider. The parent dies before the child reaches age 21. Which statement best describes the rider's effect?

Why this is the answer

The Payor Benefit rider is designed for policies owned on minors where an adult—typically a parent or guardian—pays the premiums. If the payor dies or becomes totally disabled before the insured child reaches a specified age (commonly 21 or 25), the rider waives all remaining premiums. The child's policy remains fully in force with no lapse risk. Option A is wrong—the policy does not terminate; waiver preserves it. Option B is wrong—Payor Benefit does not double the death benefit (that is AD&D territory). Option C is wrong because the rider's entire purpose is to relieve the child of premium responsibility after the payor's death. The TX outline §II.A identifies Payor Benefit as a distinct testable rider.