Connecticut Life Producer Practice exam

Which rider pays double or triple the face value upon death?

1. Cost of Living rider

2. Return of Premium rider

3. Accidental Death rider

4. Waiver of Premium rider

The correct answer is: Accidental Death rider

The Accidental Death rider is designed specifically to provide additional benefits in the event of a policyholder's death due to an accident. When this rider is added to a life insurance policy, it typically pays out double or even triple the face value of the policy if the insured passes away as a result of an accident. This added protection is particularly appealing as it ensures a larger payout to beneficiaries in tragic circumstances linked to accidental fatalities, acknowledging the often unexpected nature of such events. In contrast, the Cost of Living rider adjusts the policy's death benefit to keep up with inflation but doesn’t provide an increased payout based on the cause of death. The Return of Premium rider refunds the premiums paid if the insured survives the policy term but does not alter the death benefit. The Waiver of Premium rider allows the policyholder to stop paying premiums if they become disabled, but it does not provide any additional death benefits.