PSI Ohio Insurance Practice Exam

What provides for the continuance of life insurance coverage on a juvenile in case of the death or disability of the premium payer?

1. Beneficiary Provision

2. Payor Clause

3. Premium Waiver

4. Juvenile Rider

The correct answer is: Payor Clause

The payor clause is specifically designed to address scenarios where the premium payer, typically a parent or guardian, is unable to continue payments due to death or disability. When a juvenile life insurance policy includes a payor clause, it ensures that the coverage remains in force even if the primary premium payer can no longer contribute. This clause protects the interests of the insured minor by guaranteeing that they will continue to be covered, thereby providing financial security and maintaining the policy without the burden of premium payments on a potentially vulnerable juvenile until they are old enough or capable of maintaining the policy. Other options, while related to insurance, do not specifically address the issue of premium payment in the event of the payer's death or disability.