What is a waiver of premium rider?

What is a waiver of premium rider?

• A. A rider that increases premiums during disability.
• B. A provision that allows premium payments to continue indefinitely.
• C. A benefit that allows policyholders to stop paying premiums if they become disabled.
• D. A clause that cancels the policy after a missed payment.

Answer: (C)

A waiver of premium rider is a feature that allows policyholders to cease making premium payments if they become disabled. This rider ensures that the policy remains in force during the period of disability without the financial burden of continuing to pay premiums. It is particularly beneficial because it provides peace of mind; policyholders can maintain their insurance coverage during difficult times without the worry of losing it due to an inability to pay. While some options may incorporate various aspects of insurance policies, they do not accurately reflect the specific purpose and function of a waiver of premium rider. The focus here is on the financial relief it provides by allowing continuation of coverage without premium payments during a qualifying disability, making it a crucial benefit for many policyholders.

A waiver of premium rider is a feature that allows policyholders to cease making premium payments if they become disabled. This rider ensures that the policy remains in force during the period of disability without the financial burden of continuing to pay premiums. It is particularly beneficial because it provides peace of mind; policyholders can maintain their insurance coverage during difficult times without the worry of losing it due to an inability to pay.

While some options may incorporate various aspects of insurance policies, they do not accurately reflect the specific purpose and function of a waiver of premium rider. The focus here is on the financial relief it provides by allowing continuation of coverage without premium payments during a qualifying disability, making it a crucial benefit for many policyholders.