AD Banker Comprehensive Practice Exam

The waiver of premium rider typically expires at what age?

1. 55

2. 60

3. 70

4. 65

The correct answer is: 60

The waiver of premium rider is an important feature in life insurance policies that ensures the policyholder does not have to pay premiums if they become disabled. This rider is typically designed to protect individuals who, due to a disability, may face financial difficulties and could risk losing their insurance coverage. The typical expiration age for the waiver of premium rider is at age 60. This means that if a policyholder is still disabled and unable to work as they approach this age, they can continue to have their premiums waived, but once they reach age 60, the rider would no longer apply. This option aligns with common industry practices and ensures that policyholders are protected during their working years when the risk of being unable to continue paying premiums due to disability is higher. Choosing an age of 60 for the expiration of this rider provides a balance between coverage and the insurer's risk management since many individuals are often expected to transition into retirement or have altered financial circumstances by that point in their lives. Additionally, it is essential to note that other ages provided as answer choices—such as 55, 70, and 65—do not reflect the standard practices for the waiver of premium rider in most insurance policies.