Florida 2-15 Life, Health and Variable Annuity AgentGeneral Knowledge of Life InsuranceEasy
A policyholder wants to ensure that if they become totally and permanently disabled, their life insurance premiums will be waived. Which rider should they add to their policy?
- AWaiver of Premium Rider
- BAccidental Death Benefit Rider
- CPayor Benefit Rider
- DGuaranteed Insurability Rider
Show answer & explanationAnswer & explanation
Correct answer: A. Waiver of Premium Rider
The Waiver of Premium Rider is designed to waive future premium payments if the insured becomes totally and permanently disabled, ensuring the policy remains in force.
Why the other options are wrong
- B. This rider pays an additional benefit if death occurs due to an accident, not for disability.
- C. The Payor Benefit Rider is typically for juvenile policies, waiving premiums if the policyowner (payor) becomes disabled or dies.
- D. This rider allows the policyholder to purchase additional insurance without proof of insurability, not to waive premiums.
Waiver of Premium Rider
A life insurance policy rider that waives premium payments if the insured becomes totally and permanently disabled, keeping the policy in force.
- Requires total and permanent disability
- Premiums are waived, not reimbursed
- Usually has a waiting period before benefits begin
Memory trick: Disability hits, but premium 'waiver' keeps the coverage 'wavering' no more.