A waiver of premium rider allows an insured to waive premium payments if the insured is

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Study for the Louisiana Series 103 – Life, Health, and Accident or Sickness Insurance Exam. Familiarize yourself with key concepts through engaging questions and explanations. Prepare effectively for your exam!

Multiple Choice

A waiver of premium rider allows an insured to waive premium payments if the insured is

Explanation:
A waiver of premium rider is meant to keep the policy from lapsing when the insured can no longer work because of a disability. The trigger is a complete and permanent disability—total inability to perform any substantial work and lasting indefinitely. That level of impairment shows the insured truly cannot earn an income, so the insurer waives future premiums to maintain the coverage. Temporary disability doesn’t meet the “permanent” requirement, unemployment isn’t a disability, and simply reaching age 65 isn’t automatically enough to activate the rider.

A waiver of premium rider is meant to keep the policy from lapsing when the insured can no longer work because of a disability. The trigger is a complete and permanent disability—total inability to perform any substantial work and lasting indefinitely. That level of impairment shows the insured truly cannot earn an income, so the insurer waives future premiums to maintain the coverage. Temporary disability doesn’t meet the “permanent” requirement, unemployment isn’t a disability, and simply reaching age 65 isn’t automatically enough to activate the rider.

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