A payor benefit rider is designed to do what in a life insurance arrangement?

• A. The policy on the child remains premium-bearing even if the payor dies
• B. The policy on the parent has premiums waived if the payor dies
• C. The policy on the child has premiums waived if the payor dies
• D. The policy on the child becomes paid-up when the payor dies

Answer: (C)

A payor benefit rider protects a juvenile life policy by ensuring the child’s coverage continues even if the person paying the premiums can no longer pay. If the payor dies (or becomes disabled in some versions), the rider waives the future premiums on the policy issued for the child. This keeps the life insurance in force for the child without the need for the payor to keep paying. It doesn’t change the parent’s policy or automatically make the child’s policy paid-up; it simply prevents lapse by waiving future premiums.