Oklahoma Life Producer Practice Exam

What rider guarantees that no premium payment is required if the policy owner is disabled?

1. Waiver of Premium Rider

2. Accidental Death Rider

3. Accelerated Benefit Rider

4. Conversion Option Rider

The correct answer is: Waiver of Premium Rider

The Waiver of Premium Rider is the correct choice because it specifically addresses the scenario in which a policy owner becomes disabled. This rider ensures that if the insured suffers from a qualifying disability, they are not required to make premium payments for the duration of that disability. This provision helps maintain the life insurance policy in force, providing essential coverage without the financial burden of premiums during a difficult time. The Waiver of Premium Rider can be particularly beneficial for individuals who may face financial strain due to loss of income while dealing with a disability. By waiving premium requirements, the policyholder can avoid the risk of losing their life insurance coverage. The other options do not provide the same benefits regarding premium payments during disability. The Accidental Death Rider provides additional benefits if the insured dies due to an accident, the Accelerated Benefit Rider allows access to a portion of death benefits under certain conditions (such as terminal illness), and the Conversion Option Rider lets policyholders convert their term life insurance into a permanent policy, but none of these options address premium payments during a disability. Thus, the Waiver of Premium Rider is specifically designed to relieve policyholders of premium obligations due to disability, making it the appropriate answer.