Chartered Life Underwriter Exam 2025 – 400 Free Practice Questions to Pass the Exam

The "waiver of premium" rider is a valuable feature in a life insurance policy that specifically addresses the potential financial burden that can arise if the policyholder becomes disabled. When this rider is included, it allows policyholders to stop making premium payments without jeopardizing their coverage if they become totally disabled and unable to work for a specified period.

This rider provides peace of mind, ensuring that the policy will remain in force despite the inability to pay premiums due to disability. It effectively keeps the coverage active, allowing the insured to focus on their recovery without the worry of losing their life insurance.

In contrast to other options, increasing the sum insured or providing additional accidental death coverage does not directly relate to the waiver of premium feature. Similarly, reducing the cost of insurance after a set period is not pertinent to the waiver's purpose, which is centered around maintaining coverage in the event of a disability rather than altering its financial terms or benefits.