Colorado Life Producer License Practice Test

What is the primary purpose of the spouse term rider?

1. To cover the entire life of the spouse

2. To provide temporary coverage for the spouse

3. To enhance cash value for the family

4. To provide long-term investment options

The correct answer is: To provide temporary coverage for the spouse

The primary purpose of the spouse term rider is indeed to provide temporary coverage for the spouse. This rider is added to a life insurance policy to offer a defined amount of life insurance specifically for the insured's spouse for a limited period, typically aligning with the policyholder's needs, such as during child-rearing years or while the couple is financially exposed. This temporary nature allows the policyholder to obtain coverage for their spouse without having to purchase a separate policy, which can be more practical and economical in certain situations. It is important to understand that while the rider offers life insurance protection for the spouse, it does not build cash value and is not meant for long-term investment purposes.