Which rider would cause future premiums to be waived if the insured becomes totally disabled?

• A. Waiver of Premium
• B. Disability Income Rider
• C. Waiver of Cost of Insurance
• D. Cost of Living Rider

Answer: (A)

The concept being tested is how certain riders protect a life insurance policy when the insured cannot work. The rider that waives future premiums if the insured becomes totally disabled is the Waiver of Premium. When total disability occurs, this rider stops the need to pay premiums while the disability lasts, so the policy remains in force without lapse. There is usually a waiting period before the waiver begins, and it may continue until recovery, up to a stated age, or for the duration allowed by the policy terms.

Disability Income Rider, by contrast, provides a monthly income to the disabled insured but does not automatically waive premiums (some plans may pair it with a waiver, but the primary purpose is income, not premium relief). The Waiver of Cost of Insurance stops only the cost of insurance charges for universal life during disability, not all premiums. Cost of Living Rider increases the death benefit based on inflation, and does not affect premium payments.