Waiver of Premium Rider: Definition, Purpose, Benefits, and Cost

A waiver of premium rider is a provision in a life insurance policy that allows the policyholder to skip premium payments for a specified period of time, usually due to a disability. This can be a valuable benefit if the policyholder becomes ill or injured and is unable to work.

There are two main types of waiver of premium riders:

* **Temporary waiver of premium:** This type of rider allows the policyholder to skip premium payments for a specified period of time, typically one to two years.
* **Permanent waiver of premium:** This type of rider allows the policyholder to skip premium payments for the rest of their life.

The cost of a waiver of premium rider will vary depending on the type of rider, the length of the coverage period, and the policyholder's age and health.

The benefits of a waiver of premium rider include:

* The policyholder can continue to have life insurance coverage even if they are unable to work due to a disability.
* The policyholder's beneficiaries will receive the death benefit if the policyholder dies while the waiver of premium rider is in effect.
* The policyholder can save money on premiums by skipping payments during periods of time when they are unable to work.

The cost of a waiver of premium rider should be considered carefully before purchasing it. The policyholder should weigh the benefits of the rider against the cost to determine if it is worth it for them.

If you are considering purchasing a waiver of premium rider, be sure to speak to your insurance agent to learn more about the different types of riders available and the cost of each one.