Q224
Which of the following statements in respect of riders is incorrect?
A.
Rider means the basic death cover of a life insurance policy
AnswerB.
A rider is a provision typically added through an endorsement
C.
Riders refer to supplementary benefits in life insurance policies
D.
Riders help customize individual's preferences
Answer: Option A
Solution
Answer: Option A
Solution:
A rider is an add-on cover to the base policy that provides additional benefits. Under this, if death of the policyholder occurs due to an accident then, apart from paying the life insurance benefit promised under the base policy, the policy will also pay an additional sum insured as specified in the rider.