Series 7 Exam Question 318: Answer and Explanation

Question: 318

To protect investors of variable life insurance policies who become disabled, there is a rider called a(n)

• A. disability rider
• B. waiver of premium
• C. early withdrawal rider
• D. None of the above

Correct Answer: B

Explanation:

B. Variable life insurance policies often have a rider or statement of condition that allows individuals to keep their policy in force if they become disabled. This waiver of premium forgives policyholders of paying additional premiums if they become totally disabled.