Payor benefit rider applies when?

• A. Owner and insured are the same person
• B. Policy owner is someone other than insured
• C. Only juvenile policies
• D. Only if the insured dies before age 60

Answer: (B)

The key idea is that a payor benefit rider is designed for situations where someone other than the insured is responsible for paying the policy premiums. This often happens with juvenile policies, where a parent (the policy owner and premium payer) insures a child (the insured). The rider steps in if the payor becomes disabled or dies, guaranteeing that premiums will be covered or the policy will be kept in force, so the coverage doesn’t lapse just because the payor can’t continue paying.

That’s why the rider applies when the policy owner is someone other than the insured. If the owner and insured are the same person, there isn’t a separate payor to be protected, and the rider would not be needed to preserve the policy. It’s true that juvenile policies frequently use this rider, but it isn’t limited strictly to juveniles. And the trigger is not tied to the insured’s death alone or to a specific age like 60. It’s about the payor’s disability or death stopping premium payments.