Which of the following riders pays a beneficiary a death benefit that is double or triple?
Asked by: Fay Friesen MD | Last update: February 11, 2022Score: 4.9/5 (59 votes)
Which of the following riders pays a beneficiary a death benefit that is double or triple the face amount if the insured's death was caused by an accident as defined in the policy? ACCIDENTAL DEATH RIDER.
What riders provide for payment of double or triple the accidental death or dismemberment benefits based on the cause of death or specific type of dismemberment?
Multiple indemnity riders are riders that provide for payment of double or triple the accidental death or dismemberment benefits based on the cause of death or specific type of dismemberment.
Which of the following doubles or triples the benefits if the insured dies from a specific accident?
Which of the following doubles or triples the benefits if the insured dies from a specific accident? A multiple indemnity rider offers double or triple benefits if the insured dies accidentally, becomes dismembered, or loses a limb because of an accident.
Which of the following riders provides for the payment of part of the policy death benefit?
The Accelerated Death Benefit Rider2 provides access to a portion of the policy death benefit in the event the Insured is diagnosed with a terminal illness that results in a life expectancy of 12 months or less.
What is a rider that allows the beneficiary to be paid double the face amount of the insurance policy?
When the rider provides a benefit of twice the policy face amount, it is called a double indemnity rider. When it provides for payment of three times the face amount it is called a triple indemnity rider. Another rider that includes this benefit is the accidental death and dismemberment rider.
Accidental Death Benefit | Life Insurance Explained
What is ABR rider?
Accelerated benefit riders are essentially the modern equivalent of the viatical settlements that terminally ill policyholders use to raise cash to pay their medical bills. Under these arrangements, policyholders sell their policies to a third-party settlement company for a percentage of the face amount of the policy.
What is payor rider?
The payor rider provides an additional safeguard for life insurance taken out on a minor. If the adult premium payor dies or becomes totally disabled, premium payments will be waived until the child reaches a specific age of adulthood, such as 21.
Which of the following riders pays a beneficiary?
Which of the following riders pays a beneficiary a death benefit that is double or triple the face amount if the insured's death was caused by an accident as defined in the policy? ACCIDENTAL DEATH RIDER.
What is Cola rider?
Cost of living adjustment, or COLA, riders are an option for annuity contract holders who want to ensure that their annual payments are adjusted upward each year to help offset the impact of inflation on their payments. Cost of living riders adjust the amount of the annuity payments each year.
What is benefit rider?
A rider is an insurance policy provision that adds benefits to or amends the terms of a basic insurance policy to provide additional coverage. Riders tailor insurance coverage to meet the needs of the policyholder. Riders come at an extra cost—on top of the premiums an insured party pays.
Which of the following riders is also known as Double Indemnity?
Accidental Death. When adding an AD&D rider, also known as a “double indemnity” rider, to a life insurance policy, the designated beneficiaries receive benefits from both in the event the insured dies accidentally.
Which of the following statements regarding the accidental death benefit rider to a life insurance policy is correct?
Which of the following statements regarding the accidental death benefit (ADB) rider to a life insurance policy is correct ? Benefits are payable under the accidental death benefit rider only if the insured dies as the direct result of an accident.
Which of the following statements most correctly describes the accidental death benefit rider on a life insurance policy?
Which of the following statements correctly describes the accidental death benefit (ADB) rider on a life insurance policy? It pays benefits only in the event of accidental death. ... Which rider gives the policyowner the option to increase his or her life insurance policy's face amount based on an inflation index?
What is an accidental death rider?
An accidental death benefit rider extends your life insurance benefits to include an additional payout if you die as the result of a covered accident or within 90 days of that accident. If this happens, your family will receive a lump sum cash payment based on the coverage amount of your policy and your rider.
What is extra payout on accidental death?
It provides a lump sum payout if the policyholder dies during the policy tenure. ... It is highly affordable (low premiums). However, what you might not know is that you can increase the payout amount by buying an accidental death benefit rider.
What is accidental death and dismemberment insurance beneficiary?
Accidental death and dismemberment insurance, also called AD&D insurance, offers coverage for your family if you lose a limb or die due to an accident. AD&D insurance is similar to a life insurance policy in that both offer a death benefit, but your beneficiary wouldn't receive a payout if you die due to an illness.
What is Living Needs benefit Rider?
The Living Needs Benefit rider is an accelerated death benefit rider that advances a portion of the policy's death benefit in the event of a terminal illness, confinement to a nursing home, or an organ transplant.
What does compounded COLA mean?
Currently, COLA is a fixed 3% each year (compounded, meaning the prior year's benefit gets increased by 3%). This increase happens every year, and is supposed to help your pension benefit keep up with inflation and a constantly-rising cost of living during retirement.
What is residual disability rider?
A residual disability benefit rider (also called a partial disability benefit rider) may provide benefits if you are suffering an illness or injury that results in your inability to to work at 100%.
Which of these riders will pay a death benefit if the insured's spouse dies?
Which of these riders will pay a death benefit if the insured's spouse dies? A Family Term Insurance rider provides a death benefit if the spouse of the insured dies.
What is an insurance rider?
An insurance rider — also referred to as a floater or an endorsement — is an optional add-on to an insurance policy. A homeowners insurance rider amends a basic policy.
What is a term rider?
A term rider is a term insurance policy that pays the sum assured on death of the policyholder. Keep in mind that since most of these riders are defined-benefit plans, the benefits are fixed against an insured event. Once the rider policy is claimed, the rider terminates; and the base plan continues as per its terms.
What is Covid 19 rider?
You can add Max Life COVID19 One Year Term Rider to your life insurance policy to provide additional protection benefits in case you are diagnosed with COVID-19. The benefits under this rider are payable over and above the base plan benefits.
What is ABR and EBR?
The specific riders to be discussed are: long-term care insurance (LTCI) accelerated benefit rider (ABR) with or without an extension of benefits rider (EBR); terminal illness rider (TIR); critical illness rider (CIR); and. chronic illness rider (CHR).
What is a continuation of benefits rider?
A continuation of benefit rider may be added, which can allow for lifetime benefits after the maximum benefit period for the base policy has been reached. Underwriting is generally more basic, often with a simple phone interview or basic health questionnaire and no medical exam.