Life Policy ProvisionsQuestion 173 of 716
How does the waiver-of-premium rider on a life insurance policy work?
a.The insurer refunds all premiums paid once the insured reaches age 65, and coverage then continues in force for life with no further payments due
b.The insurer permanently reduces the death benefit in order to lower the policyowner's future premiums whenever a disability claim is approved
c.If the insured becomes totally disabled (typically for at least 6 months) before a stated age, the insurer waives subsequent premiums and the policy continues in full force
d.One premium is skipped automatically on each policy anniversary regardless of the insured's health, the cost being charged against the cash value
Explanation
Under a waiver-of-premium rider, if the insured becomes totally disabled before a stated age (often 60 or 65) and the disability lasts longer than a defined waiting period (commonly 6 months), the insurer waives further premiums during the disability. Coverage and cash value continue building as if premiums were paid.
Law Reference: Cal. Ins. Code §10271This topic, taught in full in the California Life & Health Insurance Producer Exam guide. California Life & Health Insurance Producer Exam — Complete Study Guide (2026) — PDF + EPUB, $19.99 · 14-day refund →
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Related questions on this topic
- When a life insurance policyowner makes an absolute assignment of the policy, what is the result?
- A convertible term policy is converted to a permanent policy in the fourth year of coverage. Which best describes the conversion?
- Under a typical Accidental Death Benefit (double indemnity) rider, the additional benefit is paid only if the insured's death results from accidental bodily injury and occurs within what time frame after the accident?
- The Guaranteed Insurability rider (GIR) primarily allows the insured to do which of the following?
- An accelerated benefit rider on a life insurance policy generally allows which of the following?
- A whole life policyowner takes a policy loan against the cash value. Which of the following best describes the loan?
Last reviewed: · editorial process
PrepPass team · Verified against California Life & Health Insurance License Exam · How we review
Reviewed by John Zihao Zhang — California-Licensed Life Insurance Agent (CA Dept. of Insurance License #4396095 — verify)