Which statement about life insurance term riders is incorrect?

The statement about life insurance term riders that is considered incorrect is based on the relationship between the term rider and the base whole life policy. A term rider is designed to provide additional coverage for a specified period, and it typically remains in effect as long as the base whole life policy is active. However, it does not inherently guarantee that the rider can continue indefinitely solely based on the status of the whole life policy; the term rider itself has a defined term.

In detail, term riders are meant to supplement a whole life policy by offering extra coverage during a time when higher protection is necessary, such as when children are young or when a mortgage is being paid off. Once the term ends, the rider typically expires regardless of the status of the whole life policy. Therefore, while the term rider can be attached to the whole life policy, its continuation depends on the specified term rather than the overall status of the whole life policy itself.

This highlights the importance of understanding the mechanics of how term riders operate in conjunction with whole life policies, emphasizing that they provide coverage only for a limited time.