Kentucky Health Insurance Practice Exam

The impairment rider is designed to modify the policy's coverage based on the applicant's health status. It typically excludes coverage for specific pre-existing conditions or disabilities but does not in itself increase the premium. Policyholders choose this rider to manage their risk and costs associated with higher premiums that could arise from including certain high-risk conditions.

In contrast, other riders generally add additional benefits or protections that often come with increased costs. The payor benefit rider ensures that if the policyholder becomes disabled, premiums will be paid for them, ultimately resulting in higher premiums. The waiver of premium rider allows for premiums to be waived if the policyholder becomes disabled, which also tends to contribute to increased costs due to the additional coverage provided. Additionally, the multiple indemnity rider offers higher benefits in the event of certain claims, increasing the risk to the insurer and thus culminating in a raised premium.

Thus, the impairment rider is unique in that it can help maintain a lower premium by managing the insurer's risks without adding cost, while the others increase coverage and consequently raise the policy premium.