Life License Qualification Program (LLQP) Practice Exam

Under which provision can the premiums of a juvenile policy be waived if the premium payor dies?

1. Payor provision

2. Accelerated Benefits provision

3. Assignment provision

4. Waiver of Premium provision

The correct answer is: Payor provision

The correct answer relates to the "Payor provision," which is specifically designed to address the situation involving juvenile life insurance policies. This provision ensures that if the person responsible for paying the premiums on a life insurance policy for a minor—often a parent or guardian—dies, the insurer will waive future premium payments. This means that the policy will remain in force without the need for ongoing premium payments, which is particularly important since the juvenile policy is intended to protect the child’s future insurability and provide coverage during their formative years. The Payor provision is beneficial for families, as it alleviates financial burdens at a difficult time, ensuring that the coverage continues uninterrupted. This type of provision is not typically found in adult policies, underlining its unique relevance to juvenile insurance products. In contrast, the Accelerated Benefits provision is designed to allow policyholders to access a portion of their death benefit early under certain circumstances, such as terminal illness, but does not pertain to premium payments. The Assignment provision involves transferring ownership of the policy or its benefits to another party, which does not address the issue of premium payments. Lastly, the Waiver of Premium provision generally applies when the insured becomes disabled; it does not specifically connect to the death of a premium