Which of the following riders waives premiums if the insured becomes disabled?

Rationale

Waiver of premium is the rider that waives premiums if the insured becomes disabled.

The Waiver of Premium rider ensures that the policyholder does not have to pay premiums during the period of disability, allowing the insurance coverage to remain in force without financial burden.

A (Waiver of premium) CORRECT

This rider specifically addresses the situation where an insured individual becomes disabled, relieving them from the responsibility of paying premiums for the duration of their disability. This feature helps maintain the insurance coverage without financial strain on the policyholder.

B (Waiver of cost of insurance) YOUR ANSWER

This option is often associated with universal life insurance policies and refers to waiving the cost of insurance charges rather than the premiums themselves. It does not provide the same level of protection as the Waiver of Premium rider during a disability event.

C (Disability income rider) YOUR ANSWER

This rider provides a monthly income benefit to the insured in the event of a disability, but it does not waive the premiums for the insurance policy itself. While it offers financial support during disability, the insured is still responsible for paying their policy premiums.

D (Accelerated death benefit) YOUR ANSWER

This rider allows the insured to access a portion of the death benefit while still alive, typically due to terminal illness. It does not relate to premium payments and does not waive any premiums in the event of disability.

Conclusion

The Waiver of Premium rider is crucial for protecting policyholders from the financial burden of premiums during periods of disability, ensuring continued coverage. Other riders, like the Disability Income Rider and Accelerated Death Benefit, serve different purposes and do not provide the same benefit of waiving premium payments, emphasizing the unique importance of the Waiver of Premium in disability situations.

Which of the following riders waives premiums if the insured becomes disabled?

Waiver of premium is the rider that waives premiums if the insured becomes disabled.

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