What happens to premiums if the payor of a policy becomes disabled and has the Payor Benefit rider?

When a policy includes a Payor Benefit rider, it is designed to provide financial protection in the event that the intended payor, typically a parent or guardian of a minor insured, becomes disabled or unable to pay premiums due to a qualifying event. Under this rider, the premiums are waived until the minor insured reaches a specified age, which is often defined within the policy, such as age 21.

This means that if the payor becomes disabled, the insurance company will cover the cost of the premiums, ensuring that the policy remains in force and that the insured individual continues to receive the benefits of the life insurance policy without interruption due to non-payment of premiums.

The age limit of 21 as the cut-off is common because it's generally the age when individuals are seen as capable of assuming financial responsibilities themselves. As for the other options, they either do not accurately reflect the provisions of a typical Payor Benefit rider or suggest consequences that do not apply under this specific coverage arrangement.