Minnesota Life Insurance License Practice Exam

A rider on a whole life policy that adds temporary coverage for a spouse and children is known as?

1. Family income rider

2. Family term rider

3. Child term rider

4. Spousal rider

The correct answer is: Family term rider

The correct answer is the family term rider. This rider provides additional, temporary life insurance coverage that extends to the insured's spouse and children, typically for a specified time period. This type of rider is especially beneficial for families as it ensures that, in the event of an unexpected death, the family members covered under the rider have financial protection during a critical time. With a family term rider, the coverage remains in place for a certain duration, often with lower premiums compared to permanent life insurance policies. It serves the purpose of providing immediate, albeit temporary, financial support to dependents, adding valuable security to a household's overall life insurance plan. Other options, while relevant to life insurance policies, do not specifically encompass the broader temporary coverage for both a spouse and children. For instance, a family income rider is designed to provide income replacement to the beneficiaries in case of the policyholder’s death, rather than specifically covering a spouse and children. A child term rider would only provide coverage for children, not spouses. A spousal rider typically offers coverage solely for the spouse and does not extend to children. Therefore, the family term rider is specifically tailored to address the needs of insuring multiple family members temporarily.