Ace California Life & Health Insurance Exam 2025 – Burst Into Your Bright Insurance Future!

Question: 1 / 400

What function does the "premium waiver" rider serve in an insurance policy?

It automatically increases the death benefit

It allows for early withdrawal of cash value

It waives premium payments if the insured becomes disabled

The premium waiver rider serves a vital role in an insurance policy by ensuring that if the insured becomes disabled and unable to work, the insurance company will waive premium payments during that period of disability. This feature is particularly important as it helps maintain the policy's effectiveness and ensures that the insured continues to have life insurance coverage without the financial burden of having to pay premiums while they are unable to earn income due to their disability.

Without this rider, a policyholder might find it challenging to keep their policy in force during times of financial hardship brought on by a disability. Therefore, this rider provides peace of mind, knowing that one's insurance coverage will remain intact even in tough times. The other options, while relating to different aspects of insurance policies, do not pertain to the function of the premium waiver rider.

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It provides coverage for accidental deaths

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