Part 1

Many benefits, known as riders, can be added on to life insurance policies. Some are added at no cost to the insured, and some have an additional cost. They provide additional protection to the insured. Define the following types of riders, and list the benefits of each:

• Long-term-care insurance rider
• Waiver-of-premium rider
• Cost-of-living rider
• Accelerated death benefit rider
• Double indemnity rider
• Guaranteed purchase option

Part 2

Briefly describe the following types of life insurance policies:

• Variable life
• Term life
• Universal life