Massachusetts Life Producer Practice Exam

What benefit supplement added to a life insurance policy insures an entire family?

1. Dependent life rider

2. Family term rider

3. Family income rider

4. Spouse rider

The correct answer is: Family term rider

The family term rider is a supplemental insurance benefit added to a life insurance policy that provides coverage for the entire family, typically covering the policyholder's spouse and children. This rider allows a policyholder to ensure that their family members have life insurance protection, usually for a specified period, without requiring each family member to have a separate policy. This type of rider is particularly beneficial for parents who want to secure financial support in the event of an untimely death of their dependent family members. It generally provides a death benefit that can help alleviate the financial burdens that would arise from the loss of a family member. In contrast, the dependent life rider focuses only on covering dependent children or occasionally a spouse, but it does not offer the broader coverage that the family term rider does. The family income rider is designed to provide a stream of income for the family rather than direct life insurance coverage for multiple family members. The spouse rider offers coverage specifically for the covered spouse, lacking the inclusive nature of a family term rider that considers the entire family's needs.