ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Juvenile insurance may be sold with a payor benefit rider, which provides for waiving future premiums on the child’s policy in the event of the death of the person who pays the premium.

Detailed explanation-2: -Which type of life insurance is normally associated with Payor Benefit rider? Juvenile Insurance. A Payor Benefit Rider waives the premium ONLY in connection with juvenile insurance.

Detailed explanation-3: -Term insurance is often called “pure protection” because it pays benefits only when the insured dies. It is similar to automobile, property, and health insurance as it pays only if there is a loss. If the insured dies during the policy term, the beneficiary is paid the face value of the policy.

Detailed explanation-4: -Whole life insurance is permanent insurance, as it is certain to pay the face amount either as an endowment at age 100 or upon death of the insured. In contrast, term insurance is temporary insurance, as it provides protection for only a specified term.