If an insured becomes totally and permanently disabled two months before the cut-off date for the waiver of premium rider, what happens?

• A. The insured remains eligible for all provisions
• B. The waiver is retroactive
• C. The policy terminates
• D. The premiums increase

Answer: (A)

A waiver of premium rider is meant to keep the policy in force when the insured becomes totally disabled by waiving premium payments during the disability. Once total and permanent disability is established under the rider, premiums are not paid while the insured is disabled, and the policy remains active with all rider and policy provisions intact.

In this scenario, the disability occurs before the cutoff date, so the rider qualifies to apply. That means the premium payments are waived as long as the disability continues (subject to the policy’s definition and any elimination period), and the policy does not lapse. All provisions of the policy stay in effect, and there’s no retroactive payment of waived premiums, no termination, and no increase in premiums due to the disability.