Question

14.Pamela wants to know the difference between a rider and a supplementary benefit as she hears her agent using both terms. What does Pamela's agent explain to her? A. Supplementary benefits increase the death benefit whereas riders provide additional benefits before the death of the insured. B. Riders increase the death benefit whereas supplementary benefits provide additional benefits before the death of the insured. C. They are both the same and provide and increase in benefits. D. Riders can be added to an existing policy whereas a supplementary benefit has to be added when the policy is purchased.​

Answer 1

The difference between a rider and a supplementary benefit is that riders enhance the death benefit of insurance policies, while supplementary benefits provide additional benefits during the life of the insured.

Step-by-step explanation:

Pamela's agent would explain to her that the difference between a rider and a supplementary benefit in an insurance policy is that riders are additional provisions that can be added to an insurance policy to provide benefits that are not included in the standard coverage. Supplementary benefits, on the other hand, are extra benefits that can be included in an insurance policy at the time of purchase to enhance the policy's coverage.

The correct answer to this question is: B. Riders increase the death benefit whereas supplementary benefits provide additional benefits before the death of the insured. This means riders can enhance the death benefit coverage, such as an accidental death rider which pays an additional sum if the insured's death is accidental. Supplementary benefits, however, tend to offer benefits while the insured is still alive, such as a waiver of premium benefit that covers the policy premiums if the insured becomes disabled.