Question

All these statements about the waiver of premium provision are correct EXCEPT?

a) It allows a policyholder to stop paying premiums if they become disabled.
b) It is commonly found in life insurance policies.
c) It typically requires a waiting period before taking effect.
d) It can be used to waive premiums on health insurance policies.

Answer 1

The waiver of premium provision allows a policyholder to stop paying premiums if they become disabled, typically after a waiting period. However, it does not apply to health insurance policies.

Step-by-step explanation:

The correct answer is: d) It can be used to waive premiums on health insurance policies.

The waiver of premium provision is a common feature in life insurance policies. It allows the policyholder to stop paying premiums if they become disabled, typically after a waiting period. However, the waiver of premium provision does not apply to health insurance policies.