A 'juvenile life' policy with a 'payor benefit rider' on a 7-year-old child provides that:

Explanation

A juvenile life policy is a permanent life contract issued on a minor (typically age 0 to 14). The 'payor benefit' or 'payor rider' is a key feature: if the adult payor (parent or guardian) responsible for premiums dies or becomes totally disabled before the child reaches a stated age (commonly 21 or 25, but sometimes earlier), the insurer waives future premiums and the policy remains fully in force on the child's life until the rider expires. The rider protects the child's coverage during the years when the family most needs the safety net. The statement that the child's coverage terminates on a parent's death with only a premium refund to the surviving parent is wrong; the policy continues either via the payor rider or via the child taking over premiums. The statement that the child owns the policy and controls the cash value and beneficiary designation from birth is wrong; the adult is the owner until the child reaches age of majority (typically 18 or 21, then ownership may transfer). And doubling the death benefit for survival to age 18 is fabricated; juvenile policies do not bonus-out at age 18.