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.

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