On a juvenile life insurance policy, what does the payor rider provide?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
A payor rider on a juvenile policy is an optional benefit protecting the premium flow: if the payor — typically the parent or guardian who pays the premiums — dies or becomes totally disabled before the child reaches a specified age (often 21 or 25), the insurer waives future premiums and the child's coverage continues in force. The rider functions like a waiver-of-premium benefit tied to the payor rather than the child. This keeps coverage in force for the minor even though the income provider is gone or disabled, which is the core purpose of juvenile coverage protection.
Why the other options are wrong
- B) A payor rider protects premium payments; automatic benefit increases are a separate feature, such as a jumping juvenile benefit.
- C) The rider does not pay cash value to the parent at age 18; cash value belongs to the owner according to policy terms.
- D) The rider does not convert the policy to term; coverage remains as designed, with premiums waived.
Memory hook
Payor rider = parents pay, rider covers them too: parent dies or is disabled, premiums vanish, child stays covered.