Question
Valerie is a lawyer and main income earner for her family. She expects her salary to increase 5% per year. She has a $500,000 whole
Valerie is a lawyer and main income earner for her family. She expects her salary to increase 5% per year. She has a $500,000 whole life insurance policy with a paid-up additions rider. Under this rider, she is permitted to buy additional coverage of $10,000 per year for the next 15 years, without proving insurability, by making lump-sum payments. Given this scenario which of the following statements is most correct?
Select one:
a. If Valerie doesnt use this rider in one year, that unused amount will not carry forward
b. If Valerie decides to use this rider she must buy at least $10,000 of additional coverage
c. If Valerie doesnt use this rider in one year, that unused amount will carry forward
d. Valerie must purchase up to $10,000 per year or the rider will lapse
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