L&HNationaleasy
On a juvenile life policy, the Payor Benefit (or Payor Waiver) rider operates to:
Waive future premiums on the juvenile's policy if the adult payor dies or becomes totally disabled, typically until the juvenile reaches age 21 or 25
BPay an immediate lump-sum death benefit directly to the juvenile insured if either of the child's parents or the named premium-paying guardian should happen to die
CRefund every premium that was paid into the policy back to the contract owner's estate if the juvenile insured dies before reaching the age of 18
DConvert the juvenile policy automatically over to a permanent whole life contract on the child's 18th birthday at no additional premium cost to the family
Why this is the answer
A Payor Benefit (or Payor Waiver) rider is attached to juvenile life insurance — coverage on a minor's life paid for by a parent or guardian. If the adult payor dies or becomes totally disabled before the juvenile reaches a stated age (commonly 21 or 25), the rider waives all remaining premiums until that age. The juvenile's coverage continues in full force; cash value continues to accumulate; the death benefit remains payable on the juvenile's death. The rider is the juvenile-policy analog of Waiver of Premium, but the triggering event is the payor's death/disability, not the insured's.
Studying for the Life & Health exam?
This question comes from our L&H bank. Take a free practice test — no signup.