New Jersey Life and Health State Practice Exam

For which recipient is the Payor Benefit rider designed to provide benefits?

1. Children under 18

2. Spouses of insured

3. Policyholders older than 60

4. Dependent beneficiaries

The correct answer is: Children under 18

The Payor Benefit rider is specifically designed to ensure that if the policyholder becomes unable to pay the premiums due to disability or death, the insurer will cover the policy premiums. This rider is particularly beneficial for the policyholder's children under the age of 18. By ensuring that premiums are paid, this rider protects the life insurance coverage intended for the child, ensuring they have financial protection until they reach adulthood. While the other groups mentioned—spouses, older policyholders, and dependent beneficiaries—may have their own provisions in life insurance policies, the Payor Benefit rider is explicitly aimed at safeguarding coverage for minors by eliminating the risk of their policy lapsing due to the policyholder's inability to pay. This helps maintain the intended financial support and security for children in such unfortunate circumstances.