Chapter 6 : Riders and Social Security

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Chapter 6 is about additional benefits that can be added to a life insurance policy and the basic protections provided by Social Security. For the exam, riders become much easier when you stop memorizing names and instead ask: “What problem is this rider designed to solve?”

Start with the WAIVER OF PREMIUM RIDER. If the insured becomes totally disabled for six months or more, this rider keeps the policy in force without requiring the insured to continue paying premiums while the qualifying disability continues. The key exam clue is DISABLED + PREMIUMS → think Waiver of Premium. Study Guide

Next is the PAYOR BENEFIT RIDER, which is associated with juvenile policies. If the person responsible for paying the child's policy dies or becomes disabled, the insurer makes the policy payments until the child reaches the specified age—typically 21 or 25 according to your study guide. Remember: CHILD'S POLICY + PAYOR DIES/DISABLED → Payor Benefit. Study Guide

The GUARANTEED INSURABILITY RIDER allows the insured to purchase additional coverage at specified ages or times without providing proof of insurability. If an exam question says someone can purchase more insurance regardless of changes in health or without evidence of insurability, think Guaranteed Insurability. Study Guide

The ACCELERATED DEATH BENEFIT RIDER, also called the Living Needs Rider in your guide, allows a portion of the death benefit to be advanced while the insured is still alive after being diagnosed with a terminal illness. The clue is simple: TERMINAL ILLNESS + RECEIVE PART OF DEATH BENEFIT WHILE ALIVE → Accelerated Death Benefit. Study Guide

Know the ACCIDENTAL DEATH RIDER as well. It provides additional benefits when death results from an accident and is also referred to as Double Indemnity. If you see accidental death + additional benefit, immediately think Accidental Death / Double Indemnity. Study Guide

Your guide also covers Long-Term Care (LTC) and Return of Premium (ROP). LTC can provide a portion of the death benefit for qualifying nursing or convalescent-home expenses. Your guide associates ROP with increasing term policies and describes the return of premiums under specified circumstances. Study Guide