Which rider would best provide coverage for a policyholder who becomes unable to pay premiums due to disability?

• A. Accelerated death benefit rider
• B. Disability rider with reduction of death benefit
• C. No-lapse rider
• D. Waiver of premium rider

Answer: (D)

The idea being tested is protecting a policy from lapsing when the owner can’t pay premiums because of a disability. A waiver of premium rider is designed for this exact situation: once a defined disability is met, future premiums are waived while the policy remains in force, and the death benefit stays intact. This keeps coverage in place without the policyholder needing to come up with funds during a tough time, and it can resume normal premium payment if recovery occurs or end at a specified age or time.

Other riders don’t directly address the need to maintain coverage while premiums are being paid is not possible due to disability. An accelerated death benefit rider lets you access part of the death benefit for ill health, but it doesn’t keep the policy from lapsing if premiums aren’t paid. A disability rider that reduces the death benefit changes the amount paid out in a claim and still doesn’t guarantee the policy won’t lapse if premiums aren’t paid. A no-lapse rider helps prevent lapse under certain conditions, but it does not specifically waive premiums due to disability.