Which type of life insurance is normally associated with a Payor Benefit rider?

• A. Term
• B. Whole life
• C. Universal life
• D. Juvenile insurance

Answer: (D)

The Payor Benefit rider is designed to keep a policy in force when the person paying the premiums can no longer do so, typically due to disability or death. This rider is most commonly attached to juvenile life insurance, where the insured is a child and the policy is usually owned by a parent or guardian who funds the premiums. If the payer becomes disabled or dies, the rider waives or pays the premiums so the policy doesn’t lapse, allowing the child to keep protection until they reach adulthood or the policy’s terms.

Term and universal or whole life are broad policy types, but the Payor Benefit rider isn’t inherently tied to those types in the way it is to juvenile policies. Juvenile life insurance is specifically structured with this rider to ensure the child’s coverage remains intact despite the parent’s financial vulnerability.