New Jersey Life Producer Practice Exam

Question: 1 / 400

What is a waiver of premium rider?

A feature that allows policy loans to be interest-free

A provision that allows premiums to be waived if the insured becomes disabled

A waiver of premium rider is a provision in a life insurance policy that allows the insurer to waive premium payments if the insured becomes disabled and is unable to work for a specified period of time. This rider provides financial protection by ensuring that the policy remains in force even when the policyholder cannot make premium payments due to their disability.

The ability to maintain coverage without having to pay premiums during a time of financial difficulty is a significant benefit, as it helps to secure the insured’s family's financial future in the event of their disability. This rider reflects the insurer's commitment to supporting policyholders in times of need, reinforcing the principle of insurance as a safety net for unforeseen circumstances.

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A rider that increases the death benefit during the policy term

A clause that mandates premium payments to continue during a claim

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