West Virginia State Life Insurance Practice Exam

Which of these life insurance riders allows the applicant to have excess coverage?

1. Waiver of premium rider

2. Accidental death benefit rider

3. Term rider

4. Guaranteed insurability rider

The correct answer is: Term rider

The correct answer is to choose the term rider, as it specifically offers the applicant the option to add extra coverage for a specified period while maintaining their existing life insurance policy. This rider allows insured individuals to enhance their death benefit temporarily without undergoing additional underwriting processes. Term riders are typically attached to a permanent policy, allowing policyholders to increase their coverage amount through a straightforward, limited-term plan. This added flexibility helps policyholders manage their changing coverage needs throughout different life stages, such as during times when they may have increased financial responsibilities or dependents. On the other hand, the waiver of premium rider focuses on providing coverage in the event the policyholder becomes disabled, thus allowing the insurance coverage to remain active without premium payments. The accidental death benefit rider adds additional benefits only if the insured dies from an accidental cause, serving to enhance the payout for such specific circumstances. The guaranteed insurability rider gives policyholders the future ability to purchase additional coverage at predetermined intervals without having to provide evidence of insurability, rather than offering immediate excess coverage like the term rider does.