What Benefit Does The Payor Clause On A Juvenile Life Policy Provide?
A. Allows payor to assign ownership in the event payor becomes disabled
B. Allows payor to increase face amount without providing evidence of insurability
C. Premiums are waived if juvenile becomes disabled
D. Premiums are waived if payor becomes disabled
|Correct Answer: D. Premiums are waived if payor becomes disabled|
Premiums are waived if payor becomes disabled. An insurer may waive the premiums on a juvenile life policy if the payor (the one paying for the policy) becomes disabled. Essentially, the policy premiums are not due until the payor can return to work after being injured or ill.
If the payor is unable to work as a result of a disability, this clause provides financial protection for the policyholder and their family. Before purchasing a policy, it’s important to carefully review the terms and conditions of the Payor Clause, as they may vary according to the specific policy and insurance company.
In the event of disability, a juvenile life policy’s Payor Clause prohibits the payor from assigning ownership of the policy. If the payor becomes disabled, they cannot transfer ownership of the policy to another person.
Until the payor is able to return to work, the policy will continue to be owned by him or her, and the premiums will be waived. The Payor Clause should be understood before purchasing a juvenile life policy, since its terms and conditions can have important implications for the policyholder and their family.
When the juvenile (the person covered by the policy) becomes disabled, the Payor Clause on the policy does not waive the premiums. A disabled payor (the person paying for the policy) can be waived of the premiums under the Payor Clause.
In other words, in the event that the payor becomes injured or ill, he or she will not be required to pay the premiums until they can return to work. Prior to purchasing a juvenile life insurance policy, it is important to carefully review the terms and conditions, as the policy’s provisions may have significant implications for the policyholder.