Life License Qualification Program (LLQP) Practice Exam

What type of rider would be added to an Accident and Health policy if the policyowner wants to ensure the policy will continue if he/she ever becomes totally disabled?

1. Accidental Death and Dismemberment rider

2. Disability Income rider

3. Guaranteed Insurability rider

4. Waiver of Premium rider

The correct answer is: Waiver of Premium rider

The correct choice allows the policyowner to ensure that their Accident and Health policy remains active without the need to pay premiums if they become totally disabled. This is vital because total disability can significantly impact a person's ability to earn an income, making it challenging to keep up with financial obligations, including insurance premiums. The Waiver of Premium rider specifically addresses this concern by suspending the requirement to pay premiums under the policy while the insured is disabled, ensuring the coverage remains intact. This rider provides peace of mind by ensuring that even in a time of financial and personal difficulty, the policy will not lapse due to non-payment. In contrast, the other options serve different purposes. An Accidental Death and Dismemberment rider provides additional benefits in cases of accident-related injuries or death but does not address premium payments during disability. A Disability Income rider provides a source of income if the insured cannot work due to a disability but does not automatically ensure policy premiums are waived. The Guaranteed Insurability rider allows for the purchase of additional coverage in the future without medical underwriting but does not pertain to premium payments during a disability. Thus, the Waiver of Premium rider is specifically designed to keep the policy active during a period of total disability, making it the most suitable