California Life and Health Insurance Practice Exam

Which of the following is NOT a common life insurance policy rider?

1. Accidental death benefit

2. Waiver of premium

3. Extended term

4. Child rider

The correct answer is: Extended term

The correct answer is extended term, as it represents a standard policy option rather than a rider. In life insurance, riders are additional benefits or modifications that can be added to a base policy, usually at an extra cost, to enhance coverage or provide specific protections. The accidental death benefit rider provides additional coverage in the event of the insured's death due to an accident, thereby increasing the payout beyond the standard death benefit. The waiver of premium rider allows the policyholder to stop paying premiums during times of disability, ensuring the policy remains in force even if they can’t make payments. The child rider allows for additional coverage for a policyholder's children, providing a death benefit should something happen to them. Each of these is designed to add specific benefits to the life insurance policy, making them distinct riders. In contrast, the extended term is a way to utilize the cash value of a whole life policy to extend coverage, but it does not function as an add-on benefit in the same manner as riders.