On payment of a rider benefit, what happens to a policy contract?

Ceases
Dies
Cancelled
Continues

The correct answer is: D. Continues.

A rider is an add-on to a life insurance policy that provides additional benefits. When a rider benefit is paid, the policy contract continues as normal. The rider benefit is simply a separate payment that is made in addition to the regular life insurance policy premium.

The other options are incorrect because they do not accurately describe what happens to a policy contract when a rider benefit is paid. Option A, “ceases,” is incorrect because the policy contract does not end when a rider benefit is paid. Option B, “dies,” is incorrect because the policy contract does not die when a rider benefit is paid. Option C, “cancelled,” is incorrect because the policy contract is not cancelled when a rider benefit is paid.

I hope this helps! Let me know if you have any other questions.

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