A 'Payor Waiver of Premium' rider is most commonly found in which type of insurance arrangement?

Question: A 'Payor Waiver of Premium' rider is most commonly found in which type of insurance arrangement?

Answer options:

• The policy will pay an additional death benefit to the parent. ✅ The insurer will waive premiums if the adult payor dies or becomes disabled.
• The child can increase the death benefit without a medical at age 18.
• The policy's cash value is doubled if the payor becomes unemployed.

Correct answer: The insurer will waive premiums if the adult payor dies or becomes disabled.

Explanation: The Payor Waiver of Premium rider is typically used on policies for juveniles. If the person paying the premiums (the parent/guardian) dies or becomes disabled, the insurer waives the premiums until the child reaches a certain age (e.g., 21 or 25).