Which rider pays an additional amount if death is due to an accident?

Which rider pays an additional amount if death is due to an accident?

• A. Disability income
• B. Waiver of premium rider
• C. Family term rider
• D. Accidental death rider

Answer: (D)

This question tests understanding of an accidental death rider. This rider adds extra protection specifically when death results from an accident. In practice, the policy pays the base death benefit plus an additional amount from the rider, which can be double or triple the face amount depending on the terms. So if death is accidental, beneficiaries receive more than the standard death benefit; if death is not accidental, only the base benefit is paid. Other riders provide different protections: a disability income rider pays a monthly income if the insured becomes disabled; a waiver of premium rider waives premiums if the insured becomes disabled; a family term rider adds term insurance for family members. The one designed to increase the payout specifically for accidental death is the accidental death rider.

This question tests understanding of an accidental death rider. This rider adds extra protection specifically when death results from an accident. In practice, the policy pays the base death benefit plus an additional amount from the rider, which can be double or triple the face amount depending on the terms. So if death is accidental, beneficiaries receive more than the standard death benefit; if death is not accidental, only the base benefit is paid.

Other riders provide different protections: a disability income rider pays a monthly income if the insured becomes disabled; a waiver of premium rider waives premiums if the insured becomes disabled; a family term rider adds term insurance for family members. The one designed to increase the payout specifically for accidental death is the accidental death rider.