What is a "waiver of premium" rider in life insurance?

A "waiver of premium" rider in life insurance is designed to offer significant financial relief to policyholders who become disabled and cannot make their premium payments. This rider ensures that if the insured suffers a qualifying disability, they can avoid the requirement to pay premiums while remaining covered by the policy. Essentially, the insurer waives the obligation to pay premiums during the disability period, allowing the policy to remain active without financial burden on the policyholder.

This feature provides peace of mind, as it protects the policyholder's investment in their life insurance coverage even when they experience financial hardship due to an inability to work. The conditions usually involve specific criteria regarding the severity and duration of the disability.

Other options describe features that do not align with the purpose of a waiver of premium rider. For instance, increasing premium payments or providing additional benefits upon renewal are distinct aspects of policy management that do not relate to the protections offered by a waiver of premium. Similarly, refunding premiums if the insured survives is a separate concept known as a return of premium rider, which is focused on reimbursement rather than protection against premium liabilities during periods of disability.