California Life-Only & Accident and Health AgentAccident and Health InsuranceHard
A health insurance policy includes a rider that states the policy will continue in force even if the insured becomes totally disabled and is unable to pay premiums. Which rider is this?
- AGuaranteed Insurability Rider
- BAccidental Death and Dismemberment (AD&D) Rider
- CWaiver of Premium Rider
- DCost of Living Adjustment (COLA) Rider
Show answer & explanationAnswer & explanation
Correct answer: C. Waiver of Premium Rider
The Waiver of Premium Rider is a critical provision that, once the insured becomes totally disabled for a specified period (usually 6 months), waives all future premiums for the duration of the disability, keeping the policy in force.
Why the other options are wrong
- A. Guaranteed Insurability allows the insured to purchase additional coverage without evidence of insurability.
- B. AD&D provides additional benefits for death or dismemberment due to an accident, not premium waiver.
- D. COLA adjusts benefits to account for inflation, not premium waiver during disability.
Waiver of Premium Rider
A health insurance rider that waives premium payments if the insured becomes totally disabled, ensuring the policy remains in force without further cost to the insured.
- Requires total disability for a waiting period (e.g., 6 months).
- Keeps the policy active during disability.
- Often included with disability income or life insurance.
Memory trick: Riders add special protections, like waving premiums if disabled.