NOTES OF MICHAEL DARMSTAEDTER

CHAPTER 3 TERM RIDERS

TERM: Coverage is up to a specific age or period

RIDER: MEANS this policies cannot stand alone and need to be attached
to a basic plan

TERM RIDER: A SUPPLEMENTARY CONTRACT that provides additional

benefits at a minimal cost

DISABILITY WAIVER OF PREMIUM:

IT IS A CLAUSE THAT ALLOWS FOR THE
TEMPORARY SUSPENSION OF PREMIUMS TO
BE COLLECTED FROM THE POLICY OWNER.

AT THE SAME TIME, THE POLICY OWNER'S

PLAN STILL ACCUMULATES AND PAYS OUT
CASH VALUES AND DIVIDENDS.

TOTAL AND PERMANENT DISABILITY IS A

CONDITION THAT PREVENTS THE INSURED
FROM PERFORMING ANY GAINFUL
OCCUPATION, EMPLOYMENT, OR BUSINESS
FOR WHICH HE IS LIFTED BY EDUCATION OR
TRAINING

BUT TAKE NOTE, THE RIDER DOES NOT TAKE

EFFECT IF THE DISABILITY OCCURS TO SELF-
INFLICTED INJURIES OR INJURIES ARRISING
FROM COMBAT ABILITIES
PAYORS BENEFIT OR PB: ALSO KNOWN AS PARENT WAIVER CLAUSE, THE
TERM RIDER CALLED PAYORS BENEFIT IS USUALLY
ATTACHED TO A POLICY THAT A PARENT OR
GUARDIAN TAKES OUT ON A MINOR.
IN THE EVENT OF A POLICY PAYOR OWNERS
DEATH/DISABILITY, THE RIDER CAUSES ALL
PREMIUMS DUE TO BE WAIVED UNTIL THE CHILD
TURNS 21 OR THE PAYOR TURNS 60, WHICHEVER
COMES 1ST.

IF THERE ARE FUTURE PREMIUMS TO BE PAID

AFTER THE RIDER EXPIRES AND THE INSURED IS OF
A LEGAL AGE, THE INSURED IS THE ONE WHO
CONTINUES PAYMENTS

A CLAUSE ATTACH TO A JUVENILE POLICY IT IS

PLACED THERE SO THAT IN THE EVENT OF THE
PAYOR OWNER'S DEATH OR DISABILITY, PREMIUMS
DUE WILL BE WAIVED EITHER UNTIL THE CHILD
TURNS 21 OR THE PAYOR BECOMES 60, WHICHEVER
COMES 1ST.

ACCIDENTAL DEATH BENEFIT A CLAUSE STATING THAT THE INSURANCE

COMPANY WILL PAY AN ADDITIONAL AMOUNT IF THE
POLICY OWNER DIES FROM AN ACCIDENT
 THE CAUSE OF DEATH NEEDS TO BE PROVEN FIRST

-EXCLUDES ALL OTHER CAUSES OF DEATH:

SICKNESS
POISONING
GAS INSULATION
SUICIDE
COMBAT WARLIKE ACTIVITIES
COMMITTING A CRIME
AVIATION ACTIVITIES
DEATH MUST OCCUR 90 DAYS AFTER THE
ACCIDENT

TERM INSURANCE RIDER: A TERM ATTACHED TO A PERMANENT POLICY THAT

GREATLY INCREASES THE BENEFIT OR COVERAGE
OF THAT POLICY WITH ONLY A MINIMAL ADDITIONAL
PREMIUM

THIS IS A CLAUSE ATTACHED TO A PERMANENT

PLAN TO MAXIMIZE ITS BENEFITS. IT STATES THAT IF
THE INSURED DIES WITHIN THE PERIOD OF
COVERAGE, SAY OFTEN 10 YEARS, THE COMPANY
WILL PAY THE BENEFICIARIES THE STATED FACE
AMOUNT

FAMILY INCOME RIDER: THIS IS A COMMON FORM OF TERM RIDER, A FORM

OF DECREASING TERM INSURANCE IT GUARANTEES
MONTHLY INSTALLMENTS, WHICH ARE A
PERCENTAGE OF THE FACE AMOUNT.