A married couple purchase a life insurance policy on their newborn baby. What policy rider should their agent recommend if they are concerned about continuing premium payments?

The most appropriate recommendation for a couple concerned about ensuring premium payments for a life insurance policy on their newborn baby is the payor benefit rider. This rider addresses the situation where the person responsible for paying the premiums (in this case, the parents) may become unable to do so due to unforeseen circumstances, such as death or disability.

With the payor benefit rider attached to the policy, if the designated payor (usually a parent) cannot continue making premium payments due to these life changes, the insurance company will waive the premium payments, and the policy will remain in force. This provides peace of mind that their child's life insurance policy won't lapse due to non-payment, helping to secure the child's future insurability.

Other options, while beneficial in different contexts, do not directly address the specific concern of premium payments. The guaranteed insurability rider allows for the future purchase of additional coverage without evidence of insurability but does not assist with premium payments. The automatic premium loan provision helps avoid policy lapses by automatically borrowing from the cash value to cover the premium, but it eventually leads to debt against the policy if not managed properly. Lastly, the waiver of premium rider serves a similar purpose to the payor benefit for policies where the insured becomes disabled