A student pilot can pay regular premium costs for her life insurance policy with the addition of which of the following?
A. Guaranteed Insurability rider B. Aviation exclusion C. Impairment rider D. Accidental Death Benefit rider
The Correct Answer and Explanation is :
The correct answer is A. Guaranteed Insurability rider.
Explanation:
A Guaranteed Insurability Rider (GIR) allows policyholders to increase their coverage at specified times without needing to provide evidence of insurability. This is particularly advantageous for individuals whose health status may change over time, as it provides them the flexibility to adapt their life insurance coverage to match their current circumstances. For a student pilot, this rider can be crucial because as they gain experience and possibly move into more advanced flying, their risk profile may change. If they develop a higher level of training or obtain a commercial pilot’s license, they might want to increase their life insurance coverage accordingly.
On the other hand, the Aviation Exclusion (B) typically applies to life insurance policies for pilots, where certain high-risk activities, like flying, can lead to the denial of claims if the pilot is involved in an aviation accident. This exclusion would not allow a student pilot to maintain regular premium costs because it may limit the policy’s effectiveness or increase premiums significantly.
An Impairment Rider (C) is used when a policyholder has a pre-existing condition that could affect their risk level, usually resulting in higher premiums or exclusions. This rider is not designed for individuals looking to pay regular premiums but rather for those who need to manage a specific risk related to their health.
Lastly, an Accidental Death Benefit Rider (D) provides additional benefits in the case of death due to an accident but does not directly address regular premium costs associated with the inherent risks of being a pilot.
In summary, the Guaranteed Insurability Rider is the most beneficial option for a student pilot who wants to maintain regular premium costs while having the ability to adjust coverage as their circumstances evolve.