Podcast
Questions and Answers
What is the primary payment limitation for health-related riders in an insurance policy?
What is the primary payment limitation for health-related riders in an insurance policy?
What type of insurance policy would best protect Mr. Vinod Rathod's family from the burden of a housing loan in case of his death?
What type of insurance policy would best protect Mr. Vinod Rathod's family from the burden of a housing loan in case of his death?
Which policy type is most suitable for Mr. Suresh Chandra's goal of funding his son's education over time?
Which policy type is most suitable for Mr. Suresh Chandra's goal of funding his son's education over time?
What happens to the benefit of a pure endowment policy if the policyholder dies before the policy term ends?
What happens to the benefit of a pure endowment policy if the policyholder dies before the policy term ends?
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Which statement best represents the characteristics of whole life insurance?
Which statement best represents the characteristics of whole life insurance?
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Which option is a key benefit of term insurance?
Which option is a key benefit of term insurance?
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What is the implication of naming a beneficiary in an insurance policy?
What is the implication of naming a beneficiary in an insurance policy?
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In what scenario is a cash value accumulation feature particularly beneficial?
In what scenario is a cash value accumulation feature particularly beneficial?
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What is the total payout in case of total disability due to an accident?
What is the total payout in case of total disability due to an accident?
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What happens to future premiums if the Critical Illness Benefit Rider is taken with the Waiver of Premium rider?
What happens to future premiums if the Critical Illness Benefit Rider is taken with the Waiver of Premium rider?
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How much is the death benefit paid in the event of the policyholder's death under the Term Rider?
How much is the death benefit paid in the event of the policyholder's death under the Term Rider?
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Which rider provides an additional lumpsum benefit in the case of critical illnesses?
Which rider provides an additional lumpsum benefit in the case of critical illnesses?
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What is the sum assured for the Critical Illness Benefit Rider?
What is the sum assured for the Critical Illness Benefit Rider?
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Which of the following benefits is NOT associated with the Policy if a Critical Illness is diagnosed?
Which of the following benefits is NOT associated with the Policy if a Critical Illness is diagnosed?
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At what ages are the specified policies valid according to the provided information?
At what ages are the specified policies valid according to the provided information?
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Which benefit is specifically provided under the Term Rider in case of death?
Which benefit is specifically provided under the Term Rider in case of death?
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What happens to future premium payments under the Payor Benefit Rider if the proposer dies?
What happens to future premium payments under the Payor Benefit Rider if the proposer dies?
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Under which condition will all future premiums be waived for the Waiver of Premium Rider?
Under which condition will all future premiums be waived for the Waiver of Premium Rider?
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What is a primary benefit of using riders in insurance policies?
What is a primary benefit of using riders in insurance policies?
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What occurs if the base policy associated with a rider is surrendered or lapses?
What occurs if the base policy associated with a rider is surrendered or lapses?
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Which ages are mentioned for the Life Proposer in conjunction with the benefit riders?
Which ages are mentioned for the Life Proposer in conjunction with the benefit riders?
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What effect does the critical illness diagnosis of the Life Assured have on the Waiver of Premium Rider?
What effect does the critical illness diagnosis of the Life Assured have on the Waiver of Premium Rider?
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How does the Payor Benefit Rider support children or spouses under the policy?
How does the Payor Benefit Rider support children or spouses under the policy?
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Which statement about the benefits of riders is incorrect?
Which statement about the benefits of riders is incorrect?
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Study Notes
Premium Waiver Benefit Rider (Payor Benefit Rider)
- Applicable when a policy is taken on the life of children or spouse.
- In the event of the proposer’s death or disability, future premiums are waived.
- The policy continues to provide full benefits for the life assured (children/spouse).
- Covers cases of death or permanent disability of the life proposer (LP).
Waiver of Premium Rider
- Waives premium payments if the policyholder suffers critical illness, serious injury, or disability due to an accident.
- Future premiums are waived off upon diagnosis of critical illness or permanent disability of the life assured (LA).
Key Points about Riders
- Riders add convenience by allowing multiple benefits under a single policy.
- Rider benefits are valid only while the base policy is in force.
- If the base policy lapses or is surrendered, rider benefits are forfeited.
- Health-related rider premiums cannot exceed 100% of the base policy premium.
- Total premium of all riders should not be more than 30% of the base policy premium.
- Rider benefits shouldn’t exceed the sum assured of the base policy.
- Rider premiums are generally lower than standalone policy premiums.
Case Studies Overview
- Case Study 1: Mr. Rahul Desai with a pure endowment policy worth Rs. 75,00,000 dies; no benefit is payable to his wife.
- Case Study 2: Mr. Vinod Rathod (27) seeking Rs. 50 lakh housing loan should consider a Decreasing Term Insurance or Mortgage Redemption Insurance.
- Case Study 3: Mr. Suresh Chandra (35) should opt for a Money Back Policy with periodic payouts for his son’s future education expenses.
Recap of Benefits
- Life insurance products protect against loss of productive earning capacity.
- In cases of total disability due to an accident, Rs. 20 lakhs may be paid in installments, while the base policy continues.
- Benefits under riders like Critical Illness Rider can amplify the base policy's protection, also waiving future premiums.
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Description
This quiz covers the essentials of the Payor Benefit Rider, specifically related to life insurance policies taken on children or spouses. It focuses on the premium waiver benefits in cases of the proposer’s death or permanent disability. Test your understanding of this crucial aspect of life insurance.
