Life Policy ProvisionsQuestion 173 of 315
How does the waiver-of-premium rider on a life insurance policy work?
a.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
b.The insurer refunds all premiums when the insured turns 65
c.Premiums are skipped automatically each year on the policy anniversary
d.The insurer reduces the death benefit to lower future premiums
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 §10271Practice all 315 questions free — no signup required.
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