The correct choice, which is the family term rider, effectively enhances a life insurance policy by allowing coverage for multiple family members, specifically the insured's spouse and children. This rider is designed to provide additional life insurance protection under a single policy rather than requiring separate policies for each family member.
By combining coverage in this manner, the family term rider is cost-effective and simplifies the insurance process for policyholders. It ensures that in the event of the death of a covered spouse or child, there is a defined benefit paid to the insured’s beneficiary, which can provide essential financial support during a challenging time.
The other options do not offer this type of combined coverage. For example, an accidental death rider provides benefits only if the insured dies as a result of an accident, which does not extend to family members. A waiver of premium rider allows the policyholder to maintain their coverage without paying premiums if they become disabled but does not add coverage for others. Lastly, a policy loan rider allows the policyholder to borrow against the cash value of their life insurance but does not pertain to providing coverage for family members.