State RegulationsMA specificDifficulty 2/5
A Massachusetts couple wants to add term coverage on all of their children to the wife's individual life policy through a single, inexpensive addition. Which provision fits their need?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
A children's term rider attaches to a parent's life policy and provides term insurance on the covered children under a single rider, which is exactly the one-addition, low-cost structure the couple describes. Massachusetts addresses the children's term rider within its living benefit and accelerated benefit framework at 211 CMR 55.05 alongside 211 CMR 55.00, administered by the Massachusetts Division of Insurance. The rider's economy comes from covering all eligible children in one unit rather than issuing separate policies.
Why the other options are wrong
- A) A joint-life rider covers the two spouses, not the children, and typically pays on the first death.
- B) A cost-of-living rider adjusts benefit amounts for inflation; it adds no coverage on the children.
- C) Family income benefit pays an income stream to survivors after the insured's death; it does not cover the children's lives.
Memory hook
One rider, all the kids: children's term attaches to the parent's policy.