Question

What is the 'waiver of premium' built-in rider in most child plans?

a.

A rider that provides additional coverage for the child

b.

A rider that allows the policyholder to skip premium payments

c.

A rider that makes sure the plan continues in case of the parent's untimely death

d.

None of the above

Posted under IC22 Life Insurance Underwriting

Answer: (c).A rider that makes sure the plan continues in case of the parent's untimely death Explanation:The 'waiver of premium' built-in rider is a feature in most child plans that ensures the plan continues in case of the parent's untimely death. In such a scenario, the parent's premium payments are waived off, and the insurance company continues to pay the premium on their behalf to keep the policy in force. This ensures that the child's financial security is not compromised even if the parent is no longer able to make premium payments.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. What is the 'waiver of premium' built-in rider in most child plans?
Add Comment

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. What is the primary reason for a company to purchase life insurance on the life of a key person?

View solution

Q. What are the common challenges faced by the underwriters while assessing a proposal on a key person?

View solution

Q. What are the aspects that can help in qualifying the proposed insured as a key person?

View solution

Q. According to Indian Law, is there a clear definition of a key person?

View solution

Q. Why is a person who is very old not a good fit as a key person?

View solution

Q. What makes a person qualified as a key person in terms of their level of expertise?

View solution

Q. Why is a successful track record important in qualifying a person as a key person?

View solution

Q. What is the importance of the number of key persons in a company in confirming the criticality of a person to the company?

View solution

Q. Why is it easier to evaluate the value of a key person with a good earnings trend?

View solution

Q. What is the primary reason to purchase keyman insurance?

View solution

Q. What are the common challenges faced by underwriters while assessing a keyman insurance proposal?

View solution

Q. Which of the following is NOT a factor in qualifying a proposed insured as a key person?

View solution

Q. What is the maximum amount of keyman insurance that can be granted to a company?

View solution

Q. What type of insurance plans are allowed for keyman insurance according to current regulations?

View solution

Q. Which are the types of child plans offered by the insurers in the market?

View solution

Q. What is partnership insurance?

View solution

Q. Why is partnership insurance important?

View solution

Q. How is the amount of cover determined in partnership insurance?

View solution

Q. What is anti-selection in partnership insurance?

View solution

Q. What happens to the proceeds of a partnership insurance policy?

View solution
View All MCQs on IC22 Life Insurance Underwriting

Recommended Subjects

Are you eager to expand your knowledge beyond IC22 Life Insurance Underwriting? We've handpicked a range of related categories that you might find intriguing.

Click on the categories below to discover a wealth of MCQs and enrich your understanding of various subjects. Happy exploring!

Cytogenetics

Delve into the genetic mysteries of chromosomes with our Cytogenetics category....

Marketing and Marketing Management

Uncover the strategies and tactics of marketing with our Marketing and Marketing...

Business Statistics

Uncover the power of data analysis with our Business Statistics category. Explore...

Biochemical Engineering

Master the synergy of biology and engineering with our Biochemical Engineering...

Financial Management and Financial Markets

Master the world of finance with our Financial Management and Financial Markets...

Mechanical Engineering

Explore the world of Mechanical Engineering with our specialized category. Dive into...

Civil Engineering

Dive into the world of Civil Engineering with our specialized category. Explore the...

Tissue Engineering

Delve into the cutting-edge field of Tissue Engineering with our specialized...

Verbal Ability

Hone your language and communication skills with our Verbal Ability category. Enhance...