Which rider pays out a capital sum if the insured loses a limb or eyesight?

• A. Waiver of Premium
• B. Accelerated Death Benefit
• C. Accidental Death and Dismemberment
• D. Term Rider

Answer: (C)

This question tests understanding of a rider that pays a lump-sum benefit for specific accidental losses. The rider that provides a capital sum when the insured loses a limb or sight is the Accidental Death and Dismemberment rider. It pays a one-time lump-sum amount for defined accidental losses, such as the complete loss of a limb or vision, with the payout often listed on a loss schedule and sometimes a separate amount for accidental death. The loss must typically be due to an accident and permanent as defined by the policy.

Why the others don’t fit: Waiver of Premium only waives premiums if the insured becomes disabled; it doesn’t provide a lump-sum payout for a bodily loss. Accelerated Death Benefit allows access to a portion of the death benefit early if diagnosed with a terminal illness, not a payout for limb or eyesight loss. A term rider adds temporary term life coverage, not a lump-sum benefit for accidental dismemberment.