Unit 5 Health and Life

Waiver of Premium Rider

Waives future premiums if the insured (who is also the owner) becomes disabled, after a waiting period; reimburses premiums paid during that wait

Waiver of Cost of Insurance Rider

On universal life; waives deductions from the cash account during disability, after a waiting period

Disability Income Rider

Pays the insured a monthly income while disabled, based on dollars per $1,000 of face amount

Payor Rider

Pays the premium of a juvenile policy if the adult payor dies or becomes disabled; may require evidence of insurability

Other Insured Riders

Riders covering a spouse, children, family, or allowing exchange of the insured

Insured Term Rider

Term insurance added to a permanent policy for a limited time at a lower premium than a separate policy

Return of Premium Rider

An increasing term rider equal to all premiums paid, payable if death occurs while the rider is in force

Accidental Death Rider

Pays double or triple the face amount if death is due to an accident within 90 days

Accidental Death or Dismemberment (AD&D) Rider

Pays the principal sum (100%) in addition to the face amount for accidental death within 90 days; also pays a living benefit for dismemberment

Capital Sum

The dismemberment benefit under AD&D, usually 50% of the principal sum

Guaranteed Insurability Rider

Allows additional insurance without medical questions at certain ages or life events (marriage, birth, adoption); cost based on attained age

Accelerated Benefits Rider

Advances part of the death benefit while insured is alive due to terminal illness (death expected within 24 months) or permanent nursing home confinement; reduces the death benefit

Long Term Care Rider

Advances a stated percentage of the death benefit monthly for nursing home, assisted living, or home care; reduces the death benefit payable at death