What does a waiver of premium rider allow an insured to do?

The waiver of premium rider is designed to protect policyholders from the financial burden of premium payments in the event of a total and permanent disability. When this rider is included in a life insurance policy, it stipulates that if the insured becomes completely and permanently disabled, they will not be required to make any further premium payments while they are disabled. Instead, the insurance company will keep the policy in force without requiring payment, ensuring continued coverage for the insured during a challenging time.

This can be a crucial benefit, as it protects the insured's interests and ensures that their loved ones retain the life insurance protection originally intended, even when the insured is unable to work or handle their finances due to a disability. The broad objective of the waiver of premium rider is to provide security and peace of mind regarding financial obligations during periods of significant health challenges.

The other options do not accurately reflect the purpose of the waiver of premium rider. Paying premiums at a reduced rate, transferring premium liability, or receiving a refund for previous premiums do not align with the primary function of this rider, which focuses solely on the impact of total and permanent disability on premium payment obligations.