What is the function of a death benefit rider in a life insurance policy?

What is the function of a death benefit rider in a life insurance policy?

• A. It reduces the policyholder's premiums
• B. It provides additional death benefits under specific conditions
• C. It allows policyholders to increase their cash value
• D. It nullifies the coverage in case of fraud

Answer: (B)

The function of a death benefit rider in a life insurance policy is to provide additional death benefits under specific conditions. This rider acts as an enhancement to the base policy, allowing the policyholder to receive extra financial protection that may not be included in the standard coverage. For example, certain riders can offer higher benefits in cases of accidental death or can provide coverage for specific health concerns. This feature is particularly valuable for individuals looking for tailored coverage that meets their unique needs or circumstances, ensuring that their beneficiaries have the necessary support in the event of their passing. The other options pertain to different functions that do not accurately reflect the role of a death benefit rider. For instance, while some riders may affect premiums or cash value, the primary purpose of a death benefit rider is specifically related to enhancing the death benefit itself.

The function of a death benefit rider in a life insurance policy is to provide additional death benefits under specific conditions. This rider acts as an enhancement to the base policy, allowing the policyholder to receive extra financial protection that may not be included in the standard coverage. For example, certain riders can offer higher benefits in cases of accidental death or can provide coverage for specific health concerns. This feature is particularly valuable for individuals looking for tailored coverage that meets their unique needs or circumstances, ensuring that their beneficiaries have the necessary support in the event of their passing.

The other options pertain to different functions that do not accurately reflect the role of a death benefit rider. For instance, while some riders may affect premiums or cash value, the primary purpose of a death benefit rider is specifically related to enhancing the death benefit itself.