Primerica Life Producer Practice Test

Which of the following statements is true concerning the Accidental Death Rider?

1. It will pay double or triple the face amount

2. It is only applicable in specific states

3. It is mandatory in all policies

4. It lowers the premium of the base policy

The correct answer is: It will pay double or triple the face amount

The Accidental Death Rider is a provision that can be added to a life insurance policy, and it typically provides additional benefits in the event of death due to an accident. The true statement regarding the Accidental Death Rider is that it will pay double or triple the face amount of the base policy if the insured dies as a result of an accident. This feature is designed to provide added financial protection and peace of mind for policyholders and their beneficiaries in the event of an accidental death, thus enhancing the overall coverage. This rider does not apply in a limited number of states, nor is it mandatory for all policies. It is an optional addition that policyholders can choose based on their individual needs and preferences. Furthermore, instead of lowering the premium, adding an Accidental Death Rider typically results in an increase in the overall premium cost because it provides additional benefits.