Utah Life Producer Practice Exam

Which of the following riders would not cause an increase in the death benefit?

1. Accidental death rider

2. Payor benefit rider

3. Waiver of premium rider

4. Children's insurance rider

The correct answer is: Payor benefit rider

The payor benefit rider is designed to ensure that if the policyholder (the payor) becomes unable to make premium payments due to a qualifying event—such as disability or death—this rider will cover the premium payments on behalf of the policyholder. While this rider helps maintain the policy in force and can be vital for protecting the insurance coverage, it does not directly increase the death benefit of the policy itself. In contrast, the other riders mentioned tend to augment the death benefit in specific circumstances. The accidental death rider essentially increases the payout if the insured dies due to an accident. The waiver of premium rider allows the policy to remain active without premium payments during a period of disability, but it does not affect the death benefit amount directly. Meanwhile, the children's insurance rider adds coverage for the insured's children and increases the total death benefit available to the policyholder. By understanding the purpose of each rider, it becomes clear why the payor benefit rider is the one that does not affect the death benefit amount. Instead, it focuses on maintaining existing coverage during the policyholder's financial hardship.