Final answer:
The provision in Ned's life insurance policy that exempts him from paying premiums in the event of total disability is known as a 'waiver of premium' rider.
Step-by-step explanation:
The provision added to Ned's life insurance policy that relieves him from paying premiums if he becomes totally disabled before a specified age is known as a waiver of premium rider. This type of rider ensures that the policyholder's insurance coverage continues even if they are no longer able to pay premiums due to a total disability. Such riders are integral parts of life insurance policies for those who want to safeguard against the uncertainty of future earnings due to disability. Just as social insurance programs like Social Security and Medicare provide a safety net for individuals in their old age or in case they become sick, a waiver of premium rider provides security within a life insurance policy.