Question

18 loreen is a single mother who wishes to purchase a critical illness insurance policy. she understands that if she gets diagnosed with a critical illness, it will negatively impact her family’s financial security. her current health status is good and she does not have any risk factors. therefore, she is concerned about spending on premiums when her likelihood of using the benefits from the policy is too low. which of the following riders would you recommend to loreen to address her specific concern?
a2rvdtjwdytyefledwdycna0ngpudz09
a. return of premium (rop)
b. cost of living adjustment (cola)
c. future purchase option
d. waiver of premiums
a2rvdtjwdytyefledwdycna0ngpudz09

Explanation:

Loreen is concerned about spending on premiums when the likelihood of using the policy benefits is low. The Return of Premium (ROP) rider returns the premiums paid if the policyholder doesn't use the benefits (in this case, doesn't get a critical illness). Cost of living adjustment (COLA) adjusts benefits for inflation, Future purchase option allows buying more coverage later, and Waiver of premiums waives premiums if disabled/ill – none address premium spending when benefits are unlikely to be used like ROP does.

Answer:

a. Return of premium (ROP)