What does a waiver of premium rider allow for a policyholder?

A waiver of premium rider is a provision in a life insurance policy that allows the policyholder to stop paying premiums in the event of a disability that prevents them from working. This rider ensures that, even if the policyholder becomes disabled and is unable to earn an income, their life insurance coverage remains in force without the need to make premium payments during the period of disability. This is particularly important for individuals who might otherwise struggle to maintain their financial obligations while also dealing with the challenges of a disability.

The other options do not accurately reflect the function of a waiver of premium rider. Avoiding premium payments after a certain age relates more to policies that may terminate premiums when the insured reaches a specified age rather than due to disability. Increasing coverage without additional costs does not pertain to a waiver of premium and typically requires a different rider or endorsement. Accessing cash value immediately usually refers to certain policies that accumulate cash value, like whole life insurance, but it does not tie into the waiver of premium's functionality at all.