PSI Life Exam Practice Test

Where would you typically find a payor benefit rider?

1. On a whole life policy

2. On a juvenile life policy

3. On a term insurance policy

4. On an accidental death policy

The correct answer is: On a juvenile life policy

A payor benefit rider is typically found on a juvenile life policy. This rider is designed to waive the premium payments for the policy if the adult (often a parent or guardian) who is responsible for paying the premium becomes disabled or dies. The purpose of this rider is to ensure that the policy remains in force for the juvenile insured, even in the event of unforeseen circumstances that could lead to a financial burden on the family. In the context of the options provided, while a whole life policy and term insurance policy can have various riders, they do not specifically include a payor benefit rider as a standard feature. Accidental death policies are focused more on providing benefits in the event of an accidental death rather than addressing payment issues related to age and guardianship, which is where the payor benefit rider specifically applies. Therefore, the association of the payor benefit rider with juvenile policies aligns perfectly with its intended purpose, making it the correct choice.