Primerica Life Producer Practice Test

What allows the policyowner to customize a permanent life insurance policy by adding temporary insurance on the insured or family members?

1. Accidental death rider

2. Term rider

3. Waiver of premium rider

4. Endowment rider

The correct answer is: Term rider

The option referring to a term rider is correct because a term rider provides the policyowner with the flexibility to add temporary insurance coverage to an existing permanent life insurance policy. This additional coverage can cater to specific needs, such as increasing the death benefit for a certain period or providing protection for family members who may not be covered under the primary policy. A term rider is distinct because it has a defined term limit, typically lasting for a set number of years or until a specified age is reached. This feature allows the policyholder to manage their insurance costs effectively while still enhancing their overall life coverage. In contrast, the other options do not offer this customization. The accidental death rider provides added benefits only if death occurs under certain circumstances, but does not offer a temporary layer of coverage. The waiver of premium rider ensures that premiums are paid if the policyowner becomes disabled but does not add any additional coverage. Lastly, the endowment rider typically relates to how the benefits are paid out rather than providing additional temporary coverage.