Oklahoma Life Producer Practice Exam

Which benefit waives the premium until the child reaches adulthood?

1. Child rider

2. Payor benefit

3. Accidental death benefit

4. Term rider

The correct answer is: Payor benefit

The payor benefit is designed specifically to address situations where the premium payments on a life insurance policy are waived if the policyholder, often a parent, becomes disabled or passes away before their child reaches adulthood. This feature is particularly beneficial for policies that ensure coverage for children, allowing the coverage to remain in force without the burden of premium payments during a period when the child's financial dependability is at stake. In the context of life insurance, a child rider refers to an additional benefit providing coverage for children but does not include provisions for waiving premiums. The accidental death benefit offers extra protection in the event of a policyholder's accidental death, but it does not address premium payment responsibilities. A term rider typically extends coverage for a specified period and does not involve waiving premiums contingent upon the policyholder's status. Thus, the payor benefit is the only option that specifically waives premiums until the child reaches adulthood, ensuring continued coverage during a critical phase.