What is a permanent waiver of premium rider?

A permanent waiver of premium rider is a clause in an insurance policy that allows the policyholder to stop paying premiums if they become disabled. This feature is essential because it ensures that the coverage remains in force during a period when the policyholder may be financially unable to make premium payments due to the disability.

This rider provides peace of mind since the insured does not have to worry about losing their life insurance coverage because of an inability to pay premiums caused by a long-term disability. It typically applies to total disability and may have specific definitions regarding what constitutes a qualifying disability.

This rider is particularly valuable for ensuring continued protection for the policyholder's beneficiaries, as a permanent waiver of premiums essentially allows the policy to stay active without the financial burden of premium payments during challenging times.