What does a waiver of premium rider do?

The waiver of premium rider is an important feature in life insurance and certain disability policies, primarily designed to protect policyholders in the event they become disabled. This rider allows the policyholder to stop making premium payments without the policy lapsing or being canceled, provided that the disability meets the specific criteria outlined in the policy.

When a policyholder becomes unable to work due to a qualifying disability, the waiver of premium rider ensures that their insurance coverage remains intact without the financial burden of ongoing premium payments. This benefit is crucial for individuals facing financial challenges due to their inability to earn income while recovering from a disability, ensuring they maintain their life insurance protection even during difficult times.

This rider does not directly impact the premium amounts by reducing them or raising death benefits, nor does it involve paying premiums for a beneficiary. The primary function is to preserve the insurance coverage of the policyholder during their period of inability to pay due to disability, making it a supportive feature for financial stability and peace of mind.