What is a waiver of premium rider?

The waiver of premium rider is a provision included in some insurance policies that allows policyholders to skip premium payments while still maintaining their insurance coverage if they become permanently disabled. This is particularly beneficial for individuals who can no longer work due to a disability, as it ensures that their life, accident, or health insurance remains in effect without the financial burden of ongoing premium payments during a challenging time.

This rider provides peace of mind and financial security to policyholders, enabling them to focus on their recovery without worrying about losing their coverage due to an inability to pay premiums. This feature is especially valuable in the context of life and health insurance, as it helps maintain essential protection for the policyholder and their beneficiaries.

The other choices describe different aspects of insurance but do not accurately define the waiver of premium rider. For instance, some options discuss additional benefits like accidental death or different payment plans, which do not pertain to the specific feature of waiving premiums during periods of disability.