Term Rider is

Term Rider is

• A. A permanent life insurance policy
• B. A rider that converts to a different policy
• C. A rider that provides permanent, increasing coverage
• D. An attachment to an existing policy providing temporary extra insurance protection

Answer: (D)

A term rider is an addition to an existing life insurance policy that provides extra death benefit for a set period. It’s designed to cover temporary needs, like paying off a mortgage or replacing income during a peak earning years. Because it’s attached to your current policy rather than standing alone, the coverage is temporary and ends when the term expires (unless other options like conversion are used). If the insured dies during that term, the rider adds its benefit to the policy’s death payout. The rider’s cost is separate from the base policy and tends to rise with age. This is why the description of the rider as providing temporary extra insurance protection attached to an existing policy best fits.

A term rider is an addition to an existing life insurance policy that provides extra death benefit for a set period. It’s designed to cover temporary needs, like paying off a mortgage or replacing income during a peak earning years. Because it’s attached to your current policy rather than standing alone, the coverage is temporary and ends when the term expires (unless other options like conversion are used). If the insured dies during that term, the rider adds its benefit to the policy’s death payout. The rider’s cost is separate from the base policy and tends to rise with age. This is why the description of the rider as providing temporary extra insurance protection attached to an existing policy best fits.