Life Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
A critical illness rider on a life insurance policy typically:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
A critical illness rider pays a lump-sum benefit, often a percentage of the death benefit, when the insured is diagnosed with one of the listed critical illnesses, commonly cancer, heart attack, stroke, or major organ failure. The insured can use the cash as needed during treatment. This differs from a disability income rider, which replaces income, an accelerated terminal-illness benefit, which advances death proceeds for a terminal condition, and a waiver of premium. Payment of the critical illness benefit typically reduces the remaining death benefit.
Why the other options are wrong
- B) The benefit is a lump sum, not lifetime monthly income.
- C) The rider pays benefits upon diagnosis; it does not reduce premiums.
- D) The rider is not an endowment payable at age 65.
Memory hook
Critical illness rider = a check on diagnosis of cancer, heart attack, or stroke; take it and use it.