What is a waiver of premium rider?

• A. Waives premium payments if the insured becomes totally disabled, keeping the policy in force.
• B. Increases the policy's death benefit.
• C. Increases the cash value.
• D. Reduces premiums only during the disability.

Answer: (A)

A waiver of premium rider is a provision that protects a life insurance policy when the insured becomes totally disabled. When total disability occurs, the rider waives the premium payments for the duration of the disability, and the policy remains in force with the same death benefit and cash value. There is usually a waiting period and proof of disability, and the waiver ends when the disability ends or the rider reaches its maximum age. This keeps the policy from lapsing while the insured cannot work. It does not increase the death benefit or cash value, and it does not simply reduce premiums during disability.