Which of the following options is an advantage of adding the CI coverage as a rider instead of purchasing an individual CI policy?

Maverick meets with Alyssa, an insurance agent, to review his life insurance needs. After completing the needs analysis, Alyssa suggests that Maverick purchase a $100,000 whole life insurance policy and add a critical illness (CI) benefit rider.

Which of the following options is an advantage of adding the CI coverage as a rider instead of purchasing an individual CI policy?
A . It covers more illnesses than an individual policy.
B . Benefits are paid out as soon as the individual is diagnosed with a covered condition.
C . It is less expensive than an individual policy.
D . If he is diagnosed with a debilitating illness that does not endanger his life, he may still receive coverage.

View Answer

Answer: C

Explanation:

Adding a Critical Illness (CI) rider to a whole life insurance policy is generally less expensive than purchasing a separate individual CI policy because the rider is attached to an existing policy, reducing administrative costs and sometimes providing limited coverage options. While a CI rider may offer a less comprehensive range of covered conditions than a standalone policy, it serves as a cost-effective solution for adding coverage to a primary life insurance policy. Additionally, CI riders often provide a more affordable premium than individual policies, aligning with budget-conscious clients like Maverick.