Tennessee Life Producer Practice Exam

In the event of accidental death, which benefit does the rider provide?

1. Full policy amount only

2. Additional benefits above the policy limit

3. Reduced benefits fluctuating by age

4. No benefits, as it is not applicable

The correct answer is: Additional benefits above the policy limit

In the context of accidental death, the rider typically offers additional benefits above the policy limit. This means that if the policyholder passes away due to an accident, the rider provides an extra payout that complements the standard death benefit of the life insurance policy. This additional financial support is crucial for beneficiaries, as it helps maintain financial security during an already distressing time, ensuring they receive more than just the base policy amount. This rider is particularly valuable for individuals who want enhanced protection for their loved ones in cases of unforeseen circumstances. It serves to cover potential liabilities or expenses that may arise from an accidental death, thus providing greater peace of mind for the insured and their family.