North Carolina Life Agent Practice Exam 2025 – Comprehensive Test Prep

Question: 1 / 400

What is a rider in the context of life insurance?

An additional policy owned by the insured

An additional provision that modifies coverage

In the context of life insurance, a rider is an additional provision that modifies the coverage of the primary insurance policy. Riders can enhance or limit the benefits provided under the base policy and can be added for an additional premium. They offer policyholders the flexibility to customize their coverage according to their specific needs. Examples of riders include accidental death benefit riders, which provide extra benefits if the insured dies in an accident, or waiver of premium riders, which allow the policyholder to stop paying premiums if they become disabled. This customization capability is what makes a rider valuable in tailoring insurance products to individual situations.

The other options represent different concepts within insurance or are related but do not correctly define what a rider is. An additional policy owned by the insured describes a separate insurance policy rather than a modification to an existing policy. A type of term life policy refers specifically to a form of life insurance that lasts for a predetermined period and does not relate to the concept of adding modifications. A document for claim submission pertains to the process of claiming benefits but does not involve any modifications or additional provisions in coverage. Thus, the correct understanding of a rider is critical for effective insurance planning and management.

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A type of term life policy

A document for claim submission

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