multiple choice\ns buys a $10,000 whole life ...
multiple choice\ns buys a $10,000 whole life policy in 2003 and pays an annual premium of $100. s dies 5 years later in 2008 and the insurer pays the beneficiary $10,500. what kind of rider did s include on the policy?\na. return of premium rider\nb. accelerated death benefit rider\nc. family income rider\nd. term rider\nsubmit
Answer
# Brief Explanations:
The return - of - premium rider returns the total premiums paid if the insured dies within the policy term. Here, the insured paid $100 per year for 5 years ($500 in total), and the death benefit was $10,500 ($10,000 face value + $500 in premiums returned), which is characteristic of a return of premium rider. Accelerated death benefit rider allows for early payment of part of the death benefit under certain conditions like terminal illness. Family income rider provides a regular income stream to the family after the insured's death. Term rider adds a term - life insurance component to the whole - life policy.
# Answer:
A. Return of premium rider