Question

Which life insurance rider typically appears on a Juvenile life insurance policy?

a) Accelerated death benefit
b) Guaranteed insurability rider
c) Accidental death benefit
d) Long-term care rider

Answer 1

The Guaranteed insurability rider is common on Juvenile life insurance policies, allowing additional coverage without proof of insurability at future dates.

Step-by-step explanation:

The rider that typically appears on a Juvenile life insurance policy is the Guaranteed insurability rider. This rider allows the policyholder to purchase additional insurance coverage at predetermined intervals without evidence of insurability. It's particularly useful for a juvenile policy as it enables the child to increase coverage as they grow older, regardless of their health or occupation changes, which might otherwise affect their insurability.

Cash-value (whole) life insurance policies feature both a death benefit and a cash value account. The cash value represents an accumulated amount that can be used by the policyholder during their lifetime. Juvenile life insurance policies are a subset of whole life insurance aimed at providing financial protection for the young insured.