Rhode Island Life Insurance Practice Exam

Which type of insurance policy pays benefits if the insured goes blind?

1. Term Life

2. Whole Life

3. AD and D (Accidental Death and Dismemberment)

4. Universal Life

The correct answer is: AD and D (Accidental Death and Dismemberment)

The correct choice is based on the nature of the insurance policy in question. An Accidental Death and Dismemberment (AD&D) policy provides benefits specifically for injuries resulting in disability or death from accidents. Including loss of sight or blindness under the dismemberment definition, this policy would pay a benefit if the insured were to go blind as a result of an accident. Other types of policies, such as Term Life and Whole Life insurance, primarily provide financial support upon the death of the insured, either during a specified time frame or for their lifetime, respectively, but do not cover the loss of function due to conditions like blindness. Universal Life insurance also falls into the same category as it focuses on life coverage and cash value accumulation without specific provisions for benefits related to blindness. Thus, the AD&D policy is distinct because it addresses benefits for specific losses such as blindness, making it the correct answer.