Final answer:
The Waiver of Premium Rider is a provision in an insurance policy that exempts the policyholder from paying premiums if they become disabled or seriously ill and unable to work. This rider provides a valuable benefit to policyholders by allowing them to maintain their insurance coverage even in the event of a disability or serious illness.
Step-by-step explanation:
The Waiver of Premium Rider is a provision in an insurance policy that exempts the policyholder from paying premiums if they become disabled or seriously ill and unable to work. This rider is commonly found in life insurance policies.
For example, if a policyholder purchases a life insurance policy with a Waiver of Premium Rider and becomes disabled, the insurance company will waive future premium payments, ensuring that the policy remains in force.
This rider provides a valuable benefit to policyholders by allowing them to maintain their insurance coverage even in the event of a disability or serious illness. It provides financial protection and peace of mind during challenging times.