South Carolina Insurance Practice Exam

Which of these riders will pay a death benefit if the insured's spouse dies?

1. Accidental death rider

2. Family term insurance rider

3. Child term rider

4. Return of premium rider

The correct answer is: Family term insurance rider

The family term insurance rider is designed to provide additional coverage for the spouse and children of the primary insured. When the insured’s spouse passes away, this rider pays out a death benefit, allowing the family to receive financial support during a challenging time. In the context of life insurance, this rider expands the policy to cover additional family members, thereby ensuring that the death benefits are not exclusively limited to the insured individual. This feature is particularly beneficial for families as it helps in maintaining financial stability in the event of the unexpected loss of a spouse. Other riders, such as the accidental death rider, focus primarily on providing benefits in the event of accidental death of the insured, and do not cover death due to other causes. The child term rider specifically offers coverage for children, and the return of premium rider concerns the return of premiums paid if the insured survives a certain period rather than providing a death benefit upon the death of family members. Therefore, the family term insurance rider is the most appropriate choice for paying a death benefit if the insured's spouse dies.