A disability income policy typically includes a waiver of premium rider. What does this rider do?

• A. Waives premium payments while the insured is totally disabled
• B. Pays a one-time death benefit upon disability
• C. Increases benefits during disability
• D. Waives the insurer's obligations for any claim

Answer: (A)

The key idea is that the waiver of premium rider protects the policy from lapsing if the insured becomes totally disabled. When total disability occurs, the rider waives the policy’s premium payments, so the coverage stays in force without the insured having to pay while they’re disabled. This protection is meant to keep benefits flowing and the policy intact during a period when income may be halted. It typically kicks in after a defined waiting period and ends when the disability ends or the rider’s terms are reached. Importantly, the rider does not pay a separate death benefit, does not increase disability benefits, and does not relieve the insurer of its other claim obligations; it simply removes the need to pay premiums during the disability.